GST paid vs GST collected in Bank Transaction - which to use?

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Contributing Cover User Flaxworx
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GST paid vs GST collected in Bank Transaction - which to use?

Hiya,

 

similar questions have already been asked but not really answered mine...

 

So when I sort out my Bank Transactions and I paid my GST to IRD (NZ) - which account do I use? I have the options set up as GST Collected or GST paid (with the two others being adusted) 

 

So I do my GST return every two months - have to pay GST to IRD and pay it from my business account - which one of those two accounts do I use? 

 

Maybe I just confused myself...

 

As far as I understnad it GST paid is what I paid when I purchased items and GST collected is what I charge my customers  - but what is the code when I pay that collected GST (minus my paid GST) finally to IRD?  

 

Thanks for your help.

 

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MYOB Moderator Steven_M
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Re: GST paid vs GST collected in Bank Transaction - which to use?

Hi @Flaxworx 

 

Generally, you would use both the GST collected and GST paid accounts on a payment to the IRD. Check out Help Article: Recording ATO or IRD payments and credits for the recommended process for entering those payments.

Kind regards,
Steven

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Contributing Cover User Flaxworx
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Re: GST paid vs GST collected in Bank Transaction - which to use?

Thanks!

 

Yes I did see that help article but I am still unsure.. maybe I am confusing myself.

 

And the entry field does not look like this to me either ... When I pay the GST that I collected from others (minus the one that I paid..) I can only select one account to consolidate it with either - collected or paid ... so which one is it?  or do I need a complete differnet one that is not automatically set up on the Essentials software? 

 

 

MYOB Moderator Steven_M
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Re: GST paid vs GST collected in Bank Transaction - which to use?

Hi @Flaxworx 

 

If you are making payment to the IRD you would typically record a Spend Money transaction where the GST collected is entered as a positive and GST paid is entered as a negative. If its a credit you would typically do a Receive Money transaction with the GST paid is a positive and a GST collected is a negative.

 

If you are looking it from a banking transaction perspective, you would need to select the dropdown arrow of the transaction (far right), select Allocate before entering the respective accounts, accounts and tax codes.

Kind regards,
Steven

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