gnucash-user Digest, Vol 167, Issue 1

John Angelico talldad at kepl.com.au
Wed Feb 1 17:08:37 EST 2017


On Wed, 01 Feb 2017 12:00:02 -0500
Nelson Handcock via gnucash-user-request at gnucash.org wrote:

> 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


This is the source of your confusion, as Chris Lam pointed out.

When you have more GST on purchases than in Sales, then the ATO OWES YOU the difference.

You should not be drawing a cheque to them, but awaiting their refund, and processing a bank receipt.

You could be doing this in GC, MYOB, or Oracle Financials and you would have the same erroneous result.  

If you complete your BAS correctly, especially using the extra worksheet they send, then you will see that you eventually check the box that says "ATO refund to you" (approximate wording).

Regards,
John Angelico CPA


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