Forum Discussion

PeterBor's avatar
PeterBor
Experienced User
2 years ago

GST report - Accounting method - Payments vs Invoice radio button

Hi,   Can someone please advise that the different the Payment and Invoice accounting mode is in the GST report   Thanks Peter  
  • Earl_HD's avatar
    Earl_HD
    2 years ago

    Hi PeterBor,

    Thanks for the screenshot and my apologies for the late response. In the context of  GST reporting, payment accounting and invoice accounting are two different methods of accounting for GST. These methods determine when you report and claim GST on your transactions. Here's a brief explanation of the differences between payment and invoice accounting modes in the GST report: 

    Invoice 

    • With invoice accounting, the GST is reported based on the issuance of invoices.
    • When you create a sale invoice or receive a purchase invoice, MYOB records the GST amount in the relevant GST accounts and reports it in the GST reports for the tax period in which the invoice was issued.
    • This means that even if you haven't received or made the actual payment for the transaction, the GST is recorded and reported when the invoice is created.

    Payment 

    • Payment accounting, also known as cash accounting, reports GST based on actual payments received or made.
    • GST is recorded and reported in the GST reports only when payments are received for sales or made for purchases. If you haven't received or made any payments, GST is not reported for those transactions.

    It's also important to consult with your accountant or tax advisor when configuring your GST settings in you AccountRight.

    Feel free to post again, we're happy help.
    Regards,
    Earl

Genreve_S's avatar
Genreve_S
MYOB Moderator
2 years ago

Hi PeterBor, 

 

Thanks for posting your concern in the forum. 

 

I understand how important it is that the differences in the options in the GST report are clear. In my understanding, GST report options only show either Cash or Accrual. The cash report includes all transactions paid during those period ranges of the report, while the accrual report will include even the transactions that were paid in cash and paid after the transition date.

 

I recommend reading through this article Business reports. This will give you more information about the GST reports. 

 

If my understanding is incorrect, feel free to clarify your question. Let us know if you require any further assistance. 

 

Cheers, 
Genreve

  • PeterBor's avatar
    PeterBor
    Experienced User
    2 years ago

    Here is a screen shot of the GST report on my MYOB system.

    As you can see it says Payments or Invoice not Cash and Accrual

     

     

     

    • Earl_HD's avatar
      Earl_HD
      MYOB Moderator
      2 years ago

      Hi PeterBor,

      Thanks for the screenshot and my apologies for the late response. In the context of  GST reporting, payment accounting and invoice accounting are two different methods of accounting for GST. These methods determine when you report and claim GST on your transactions. Here's a brief explanation of the differences between payment and invoice accounting modes in the GST report: 

      Invoice 

      • With invoice accounting, the GST is reported based on the issuance of invoices.
      • When you create a sale invoice or receive a purchase invoice, MYOB records the GST amount in the relevant GST accounts and reports it in the GST reports for the tax period in which the invoice was issued.
      • This means that even if you haven't received or made the actual payment for the transaction, the GST is recorded and reported when the invoice is created.

      Payment 

      • Payment accounting, also known as cash accounting, reports GST based on actual payments received or made.
      • GST is recorded and reported in the GST reports only when payments are received for sales or made for purchases. If you haven't received or made any payments, GST is not reported for those transactions.

      It's also important to consult with your accountant or tax advisor when configuring your GST settings in you AccountRight.

      Feel free to post again, we're happy help.
      Regards,
      Earl

      • PeterBor's avatar
        PeterBor
        Experienced User
        2 years ago

        Thank you for the information it is appreciated.

         

        This information should be in the documentation in MYOB help.

        If it is I could not find it.

         

        Thanks again 

        Peter B

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