GST on Wheat Payment

[Tridia]

How do others record Sales such as Wheat Sales that have automatic deductions taken out eg

Recording

Wheat Sale Gross Gst

The automatic deduction of expenses such royalities and levies with Gst.

This results in the deduction be posted to GST collected on General Ledger but the same deduction is in the GST report it is under expense

thereby throwing the general ledger out.

How are others record?

[Princess_R]

Hi @Tridia 

Thank you for your post and welcome to the Community Forum.

I would recommend creating a new tax code with the calculations for the wheat payments. However, It would be best to speak to your accountant to record accordingly to your business.

Please feel free to post again I'm happy to assist.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,

Princess

[Julie_A_C]

Hi @Tridia @Princess_R

I assume the wheat is GST free if nothing has been done to it.  The levies would also have be GST free.

For that part it is simple and would be similar to what I do for my vegetable grower and I can do a negative line on my sales invoice.

The Royalties though would most likeley have GST which is what is throwing out both your your sales reported and GST collected account.

You would be best to do a sales invoice for the Gross amount of the sale then receive the payment of the invoice to undeposited funds.

Do a purchase for the royalties and levy deductions and then pay this off from undeposited funds.

Then go to prepare bank deposit tick both entries and the nett figure should agree with what is on you bank statement and all entries will go to correct GST collected and paid accounts, and your sales figure will show as the gross amount and not just the nett amount.

Hope this helps.