PAYG CREDIT WITH ATO

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JANELLE
Experienced Cover User
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Experienced Cover User
Australia
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PAYG CREDIT WITH ATO

Hi we received a FY Tax refund from the ATO  on 16/11 which is great except it overlapped with my PAYG payment that was set up for the 17/11.

i.e: The initial FY refund due back was $4000  but we only received back $2000 on 16/11 as the OCT PAYG payment by the ATO was processed on 17/11 for the $2000. This now leaves us in credit for $2000 because of the date overlap, this now leaves us  in credit for the next PAYG.

I now have to process the NOV PAYG, but because we are in credit no payment is required but how do you record this in MYOB. 

Your asstsance on this would be appreciated as it has happened with one of the other companies I deal with as well.

 

Many thanks

Janelle

2 REPLIES 2
Tracey_H
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Re: PAYG CREDIT WITH ATO

Hi @JANELLE 

 

Thanks for your post. If you don't use Pay Liabilities to process the payment for PAYG you can record a Receive money transaction. In the Amount field enter the amount received, allocate the full amount of the refund to the applicable income tax account and enter the PAYG amount as a negative to the PAYG liability account.

 

For example:

 

image.png

 

 

If you do use Pay Liabilities, record the Receive money as above. Instead of selecting the PAYG liability account select the suspense account. When you record the Pay Liabilities transaction select the suspense account in the Pay from account field. 

 

Whichever method you use the full refund amount will be posted to the tax account and the PAYG liability owing will be reduced.

 

Please let me know if you need further help.

 

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

Cheers,
Tracey
Previously @bungy15

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DuncanS
Ultimate Partner
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Re: PAYG CREDIT WITH ATO

@JANELLE @Tracey_H 

 

The Income Tax Refund should be a Current Asset at 30 June.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E duncan@businessadvicetax.com.au T 02 9904 3672 7 days

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