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Which GST code do I use?

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Contributing Cover User Michelle2017
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Michelle2017
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Which GST code do I use?

When I get a refund from the IRD for GST which code do I use when I allocate it?

 

There are four codes:

 

GST collected

GST input tax adjustment

GST output tax adjustment

GST paid

 

Which one should i be using.

Thanks

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MYOB Staff Post RienaP
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RienaP
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Re: Which GST code do I use?

Hi @Michelle2017,

 

A warm welcome back to the forum and I hope you are finding this useful.

 

In MYOB Essentials, you need to create a new account named as GST Payments/Refunds  (maybe 2-2900) under current liability account with these four accounts that you have mentioned and code your transactions to this account. By coding to any of the accounts below may result in incorrect GST. I would also recommend you to contact your accountant to seek professional advice. 

 

Hope this helps and please let us know if you have any further queries. 

 


Regards,
Riena
MYOB Training Specialist
Ultimate Partner DuncanS
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DuncanS
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Re: Which GST code do I use?

@Michelle2017 @RienaP

 

I am in Australia and will comment on our terms.

 

Payments to or Refund from the ATO are allocated as per the figures recorded on the relevant BAS.

There may be GST Collected, GST Paid, PAYG - W and PAYG - I.

 

I do not use a ATO clearing ledger.

 

Each time a BAS is prepared, the GST Report and Payroll Report should be reconciled to the Balance Sheet.

 

Duncan

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

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Re: Which GST code do I use?

Hi @RienaP 

I was searching this question myself and found this answer from you.  I just wanted to clarify why you were recommending the GST Refund/Payment code be set as a Current Liability?

Thanks for your help!

Regards

Mel

MYOB Staff Post RienaP
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RienaP
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Re: Which GST code do I use?

Hi @melgrey,

 

Yes, that is correct. That is one way of dealing GST payment/refunds to/from IRD but the other way of dealing with GST Payments/Refunds are outlined below:

 

How do I enter a payment to the IRD?

If you owe a payment to the IRD you can record it through a Spend Money transaction.

  1. On the Banking menu, click Spend money. The Spend Money page appears.
  2. In the Pay from the field, select the account the IRD payment is coming from.
  3. If you have set up the IRD as a contact, select this contact in the To field.
  4. In the Notes field, specify what this payment is for.
  5. In the Amounts are field, select GST exclusive.
  6. Enter the accounts and amounts for the transaction. Note that GST paid by you is entered as a negative value, and GST collected by you is entered as a positive value. See our example below.
    Example spend money transaction containing GST paid and collected
    7. When all lines have been entered, click Save.

 

How do I enter a refund (credit) from the IRD?

 

If you are to receive a refund from the IRD you can record it through a Receive Money transaction. The allocation accounts will be the same as those for an IRD payment.

  1. On the Banking menu, click Receive money. The Receive Money page appears.
  2. In the Deposit into field, select the account the IRD payment is going into.
  3. In the Notes field, specify what this transaction is for.
  4. In the Amounts are field, select GST exclusive.
  5. Enter the accounts and amounts for the transaction. Note that GST paid by you is entered as a positive value, and GST collected by you is entered as a negative value. See our example below.
    Example receive money transaction containing GST paid and collected
  6. When all lines have been entered, click Save.

Let us know how you go as we are happy to help should there be any further queries, 


Regards,
Riena
MYOB Training Specialist
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