GST on Pre-Conversion Deposits incorrect
Hi there
I entered 2 pre-conversion deposits on our changeover to AccountRight Premier NZ 2020 from AccountRight Premier v19.8. These were dated 1/4/2020 being our conversion date and I am now trying to sort out our GST for 1/4-31/5/20. We are using Payments (Cash) basis.
I've noticed that the 2 pre-conversion deposits show up in our GST reports for this period, but we have already paid GST on these deposits for the period ending 31/3/20.
These are the steps I went through:
How do I correct this please so it doesn't show on the GST report?
Thanks,
Caroline
Hi Caroline_V
From an AccountRight perspective, as a Recieve Payments transaction has been created and the invoice has been paid there will be an impact on the GST reports due to that payment transaction (assuming those reports are being run on a payments basis.
The only way to remove that would be to use a not reportable GST code on the transaction for that deposit amount, having the residual amount of the invoice (i.e. the original invoice amount less the deposit amount) as a separate line with the respective GST code. For example, say the Invoice was for $150, a $10 deposit has been paid you would be looking at having $10 as a not reportable tax code and then $140 against a reportable tax code list GST.
However, in saying that, I would recommend speaking to an accountant in regards to the best way to handle that situation.