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Switching the BAS from Cash to Accruals

Switching Business Activity Statement (BAS) generation from the Cash method to the Accruals method requires a manual step whereby unpaid accruals GST from the previous BAS periods is incorporated into the current BAS period. This is done outside of Cadzow 2000 and can be done in one of two ways:

  1. Using GST in receivables and payables at the switchover date (recommended); or

  2. Recalculating from scratch.

At the changeover date, there are a number of entries which have been paid, and which have therefore contributed to previous BASes, and a number of entries which have not been paid, and which have not. After the changeover date, entries are included on an accruals basis regardless of whether they have been paid. This means that there are a number of entries which have been skipped — the unpaid entries prior to the changeover date — and so the GST in these transactions must be included in the first BAS after the changeover.

Using GST in Receivables and Payables

  1. Configure Cadzow 2000 to generate BAS on the Accruals basis (NB: this needs to be done by Cadzow support).

  2. Produce accounts receivable and accounts payable trial balances back-dated to the changeover date, using both the standard format and the formats which show the ex-GST values and GST values.

    The changeover date is the last day of the previous BAS, for example, 30 April, 30 June, 30 September or 31 December.

  3. Determine the GST included in each trial balance — in simple cases it will be 1/11th of the total, but use the ex-GST trial balance to determine the exact amount.

  4. Generate the BAS for the first period after the changeover.

  5. Add the GST values calculated from the trial balances to those shown in the BAS report.

  6. Check the results with your accountant.

This process only needs to be done once. All subsequent BAS reports will be correct by themselves and will not need adjustment.

Recalculating from Scratch

  1. Save copies of all your previous BAS reports by saving them as Snapshot files.

  2. Clear all BAS data, and all prior periods (NB: this needs to be done by Cadzow support).

  3. Create a BAS period starting from, say, 01/01/1990 to the changeover date.

  4. Generate this BAS.

  5. Calculate the total GST already paid by referring to all the original BASes as submitted (ie. not from the reports generated above).

  6. Calculate the difference between this total and the total shown on the super-BAS generated at 4.

  7. Configure Cadzow 2000 to generate BAS on the Accruals basis (NB: this needs to be done by Cadzow support).

  8. Generate the BAS for the first period after the changeover.

  9. Add the GST values calculated at 6. to those shown in the BAS.

  10. Check the results with your accountant.

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