GST on FBT

Topic: GST Relating to FBT

To record a GST Liability relating to FBT and personal benefit resulting in a Loan or debt due to the company.

Post a Claim to the appropriate loan Job e.g. LOANJS (loan re John Smith) (could also just use GENLED Job, or similar) and the GL account should be an income account say 7.XXXX  FBT Contribution.

The affect of this entry will to debit the Loan account and credit the FBT Contribution and GST Collected accounts respectively.  The BAS will reflect GST Sales at G1 and G6 for the GST Inclusive amount (equal to the Loan amount), with the GST Collected component showing in 1A and G9.

The loan debt will be reported in Debtors.  A Receipt to the loan job would be the appropriate transaction posting when debt is paid.

If it is not acceptable to reflect the debt in Debtors, create a new GL loan account in Assets and post a negative Claim against the Job code of the original Claim and select the new GL account.  Use the same date on both the positive and negative claims (re negative claim: do not show GST separately and do not enter G3 in Comments).  The receipt would in this case be posted as a Direct to GL receipt against the Loan asset account.

End of Document