Australia GST setup

[DaveC49]

Hi Christopher,

You would normally treat the GST you owe the ATO on your Sales as a
Liability as until you complete your BAS statement and pay it, it is money
your business is going to have to pay at some future time. When you sell an
item, the amount of the GST on that item will be credited to the
Liability:GST:Sales account in that case. It is normal practice to set up
the Liability:GST:Purchases as a Liability contra account, i.e. it is a
Liability account and when you make a purchase, the GST on your purchase
would be debited to the Liability:GST:Purchases account. Similarly the
Liability:GST:BAS account in which you record the payments to the ATO is
also a contra account and when you make a payment, it is debited to the
Liability:GST:BAS account.

You could make all three of these accounts subaccounts of a placeholder
Liability:GST which will total the three accounts and reflect what you
currently owe the ATO at any time.

If you look back through past posts re GST  ( will be a couple of years ago
) you will find posts on how to setup the Tax Tables so that GST can be
calculated automatically for you on invoices/bills when they are created and
allocated automatically to the above accounts when the bill/invoice is
raised.

I am assuming you know what the other parts of the splits are for the sales
and purchase transactions above. If not get back to me and I can give you a
full breakdown for each transaction type of the credits and debits in the
splits.


David Cousens



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