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Cadzow 2000 Accounts Payable: Handling Unusual GST Amounts

Some suppliers (for example, Government bodies, insurers) issue Tax Invoices with GST amounts which are not simply 1/11th of the total. Cadzow 2000 Accounts Payable (and many other accounting systems) does not allow GST rates which are not 0% or 10%. So how can this be entered to ensure the transaction balances and maintains fidelity with Business Activity Statement (BAS) reporting requirements?

The answer is to split the transaction into a line item with 0% GST and another line item with 10% GST.

For example, suppose you have an invoice for motor registration which has a total of $830.00, and this includes $30.95 of GST.

If the GST is $30.95, this means the GST-applicable base rate is $30.95 × 10 = $309.50.

Therefore the GST-free base rate is $830.00 − $309.50 − $30.95 = $489.55.

Thus, enter the transaction with one line item of $489.55 at 0% GST and one line item of $309.50 at 10% GST.

When entering transactions of this type, ensure the total and GST calculated is the same as the supplier's invoice.

Worksheet

Invoice Total inc GST  [A]  $__________.___
GST  [B]  $__________.___
GST-Taxable Amount  [C]    [B] × 10  $__________.___
GST-Free Amount  [A] − [B] − [C]  $__________.___

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