How to pay a Sales Tax invoice?

[Nelson Handcock]

Hi,

Thnks for all the suggestions - I can see it makes sense to just enter the
BAS payment as a transaction rather than raise a supplier bill.

I've tried to set it up, but I'm still a bit confused....



Based on the Alternate Australian GST Setup info,

I have the following accounts for GST:
Liabilities
Liabilities:GST
Liabilities:GST:GST on Stock Purchased
Liabilities:GST:GST on Sales
Liabilities:GST BAS Payments

I have posted my invoices raised to my customers and the bills from my
suppliers.

There is more GST on stock purchased than GST charged to my customers, so I
owe the ATO. The account balances show:

Liabilities:GST -494.30 (parent account - balance calculated)
Liabilities:GST:GST on Stock Purchased -1277.13
Liabilities:GST:GST on Sales 782.83
Liabilities:GST BAS Payments

I was expecting that when I enter the BAS Payment transaction in the Bank
account, the net liability has been addressed and the balance of the parent
GST account should show 0.00


However, I get this:

Liabilities:GST -988.60
Liabilities:GST:GST on Stock Purchased -1277.13
Liabilities:GST:GST on Sales 782.83
Liabilities:GST BAS Payments -494.30


I can see that earlier replies talk about adding splits into the
transaction - and I think this is where I'm getting confused. If I click
the split button and try to reverse the net value of the GST on Stock
Purchased then it seems to create a separate transaction and it turns into
a big mess.

I hope someone can clarify what I'm supposed to do, or whether it's simply
a case of me mis-interpreting the accounts, or whether I've set something
up wrong.


Thanks & Regards,

Nelson Handcock


On Tue, Jan 31, 2017 at 6:23 AM, Nelson Handcock <nelson.handcock at gmail.com>
wrote:

> Thanks for all the suggestions - very helpful. I'm pretty sure I have a
> better idea now.
>
> Love this GNUCash user community!
>
>
>
> On Tue, Jan 31, 2017 at 6:00 AM, Liz <edodd at billiau.net> wrote:
>
>> Maf. King wrote:
>> > On Monday, 30 January 2017 11:13:17 GMT Nelson Handcock wrote:
>> >> Hi,
>> >>
>> >> Bumping my question - still stuck with this....
>> >>
>> >> Thanks & Regards,
>> >>
>> >> Nelson Handcock
>> >
>> >
>> > Hi Nelson,
>> >
>> > I was going to reply to your original post with a UK-centric viewpoint,
>> > but
>> > Geert beat me to it and i thought i wouldn't be adding much to his
>> reply.
>> >
>> > Here, we have VAT, which sounds similar to your GST in as much as you
>> > charge
>> > some on your invoices, you pay some with your bills, and quarterly, you
>> > report
>> > and hand the difference over to the taxman.
>> >
>> > IMHO, the calculation for the taxman doesn't give rise to a new invoice
>> > (in
>> > the GC sense of the word, needing a supplier and A/P accounts etc.)
>> What
>> > you
>> > have is effectively a statement of facts, with a bottom line of  "pay us
>> > $x
>> > now"
>> >
>> > The tax demand is asking for the money that belongs to the government,
>> > which
>> > you have collected on their behalf along with your invoices.  Yes, you
>> can
>> > offset the bits you have paid out to your suppliers, but in effect what
>> > they
>> > are asking for has never been yours; you have been "keeping it safe" for
>> > them.
>> >
>> > So I create a "manual transaction" from the bank account, with (at
>> least)
>> > 3
>> > splits, not an "AP transaction".  This transaction reduces the bank
>> > balance by
>> > the total that is due to the tax dept, and at the same time zeroes out
>> the
>> > "Tax Collected" and "tax paid" accounts.  The GC transaction should
>> > balance,
>> > as Tax Collected - Tax paid = tax due from bank account
>> >
>> > That's how I do it in the UK.  YMMV, of course.
>> >
>> > HTH,
>> > Maf.
>> >
>>
>> I do mine with multisplits also. I have transactions which contain 0.00
>> for the amounts in the scheduled transactions list, and put in the
>> required amounts to return the balances of GST:collected GST:paid and
>> GST:paid:vehicle to zero.
>> GST:paid:vehicle has to have initial arithmetic to pay my personal share
>> of the car costs.
>> My PAYG tax is also in those transactions as I pay that monthly.
>>
>> Importantly, the date of those transactions is fixed to the last day of
>> the month, even though I really pay the owed money some weeks later. This
>> helps me sort out what I have to pay each month.
>>
>> Liz
>>
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