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Topic: GST Conversion from Accruals to Cash Basis
There may be instances where a user needs to change from Accruals to Cash Basis GST and BAS reporting.
Changing from Accrual Basis to Cash Basis GST in the system:
| 1. | ensure that you fully complete the BAS for the quarter ending 30/06/02 and that the 2 General Ledger accounts controlling GST have nil balances as at 30/06/02. Obviously it is essential that invoice and claim posting for the 2002 has been completed. |
| 2. | Change the GST basis in system SET UP for each company affected. |
| 3. | The reporting from now on will be based on GST on Payments and Receipts. GST will still be recorded against Invoices and Claims as this is the source of the GST amount on Payments. In the case of Receipts you will have to enter the GST amount manually at the time of posting. |
| 4. | It is okay to have already posted July invoices and claims before changing the GST setting in SET UP but any Payments and Receipts with July and later dates will need to have GST entered manually on those transactions through the Audit Trail screen. |
| 5. | Be aware that given a Payment can include more than one invoice you need to be careful when entering Comments such as G10 and G14 on the Payment. The Comment will apply to all invoices paid by the single payment. Therefore on occasions you may need to generate more than one payment for the one Creditor. |
ATO Publications:
Useful ATO publications available through www.taxreform.ato.gov.au and supplied to registered ABN entities are:
"The Building and Construction Industry & The New Tax System"
"How to determine the value of construction work-in-progress" GST Bulletin GSTB 1999/2 14/9/99
"Business Activity Statement Instructions" (spiral bound) NAT 3030-05.2000 ISBN 0 642 43330 5
"BAS Basics" NAT 3898-01.2001
Please note that Databuild clients should seek taxation advice from their Tax Accountant and not Databuild support staff.
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