Here's the problem..
Clients in the building industry need to lodge an annual Taxable Payments Report with the ATO.
Many small subcontractors are registered with an ABN, but not registered for GST (Its not mandatory to register for GST if t/o is less than $75k pa).
Many clients in the buidling game are very slack with admin and fail to check the GST status when coding subcontractor Essentials transactions or setting rules for auto account allocation. Consequently, GST credits get claimed when they shouldn't be claimed and then mistakes get reported to the ATO who then pursue both the client & the subcontractor.
This problem could be avoided (or minimised) if Essentails had the functionality of Account Right to select a supplier Tax Code. The adviser can then set the system up to make it foolproof.
The work around is to set up two GL expense codes for each relevant code and set the tax code to GST on one & FRE on the other.
"Contacts need provision to set Supplier Tax Codes to override default GL tax codes - particularly to help with Taxable Payments Reporting"