Australia GST setup

[Christopher Lam]

Thank you so much. All makes sense.

Every RCTI will *need* to be dissected, and GST:BAS accounts for recording
GST monies actually *transferred* to taxman.

(And we haven't discussed that the quarterly GST payments can be adjusted
with the income tax payments, generating another split transaction :-o )

I think I'll prepare article for wiki.

FWIW I am not using AR/AP nor Tax tables, and life is simpler that way.

We <3 gnucash and its developers... everytime I meet the
accountant/financial planner they're astounded how quickly I can retrieve
information.

Thank you for thoughtful replies!

On 12 August 2016 at 08:27, DaveC49 <davidcousens at bigpond.com> wrote:

> Hi Chris,
>
> Looking a bit more closely at your example I would use the two transaction
> approach you labelled (2). as you are really recording two separate
> transactions, your contracting to a customer for the supply by you, and
> your
> payment to your agent of his fees/commission for his services to you
> associated with that supply. One is a customer transaction and the other is
> a vendor transaction and combining them in the single split, particularly
> if
> you are using the business features (invoices, bills etc ) in Gnucash,
> would
> confuse the program and the accounting
>
> In the example shown, you have collected from your supplier$1000(exGST)+
> $100 GST which is owed to the ATO and you have paid $330 including $30 GST
> to your agent which is reimbursable by the ATO to you. The result is that
> you have a nett  amount owing to the ATO of $70 at the end of the
> transaction.  Unless you have a majority of other transactions where the
> ATO
> owes you money on those transactions which exceeds what you owe the ATO
> every quarter, I would use Liability Accounts to record the GSTon the
> transactions, but it is a moot point and either using Liability or Asset
> accounts will correctly record the information in Gnucash.
>
> Transactionsfor liability accounts for recording GST (replace Accounts
> Receivable and Accounts Payable with Bank if the transactions with your
> contractor are cash rather than credit transactions)
>
> Debit                                          Credit
> Asset:AccountsReceivable                                 1100
> Liability:GST:Sales
> 100
> Income:Contracting
> 1000
>
> Liability:AccountsPayable
> 330
> Liability:GST:Purchases                                            30
> Expenses:ServiceFees                                            300
>
> After these transactions your GST account *balances *should be ( assuming
> no
> prior transactions since your last BAS)
>
> Liability:GST(Nett )
> 70
>   Liability:GST:Sales
> 100
>   Liability:GST:Purchases                                          30
> (contra account)
>   Liability:GST:BASPayments
> (contra account)
>
> When you pay your BAS the transaction is (assuming only the single
> transaction in that month)
>
> Asset:Bank
> 70
> Liability:GST:BASPayments                                    70
>
> and the resulting *balances* in the GST accounts become
>
> Liability:GST(Nett)
> 0
>   Liability:GST:Sales
> 100
>   Liability:GST:Purchases                                          30
> (contra account)
>   Liability:GST:BASPayments                                  70
> (contra account)
>
>
> I am hoping the spacing survives Nabble in the post. Where I have indented
> accounts, they are sub accounts of the Liability:GST(Nett) account. If you
> used Asset accounts to record your GST,  you would simply replace Liability
> with Asset as the account header and account type but otherwise the
> transaction splits would remain the same. I hope I have not been too
> pedantic, but I wanted to be clear.  You may want to read the documentation
> on
> setting up accounts if my use of  "account type" (Asset, Accounts
> Receivable, Liability, Accounts Payable, Income and Expense) as distinct
> from the names of account is not clear. The account type is used internally
> in Gnucash to support and enforce some specific accounting rules,  whereas
> the name an account has no effect on how those rules are applied.
>
> Some previous posts on using tax tables in the business features
> (http://gnucash.1415818.n4.nabble.com/Goods-and-Services-Tax
> -GST-td4663753.html#a4663778)
> (http://gnucash.1415818.n4.nabble.com/How-to-configure-tax-t
> ables-for-GST-tp3029433p3036500.html)
>
> Best wishes
> David
>
>
>
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