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:

https://help.myob.com/wiki/display/ar/Entering+pre-conversion+deposits?searchfacet=support:help&searchterm=ENTER%20PRE-CONVERSION%20DEPOSIT&_ga=2.163341948.1122499011.1592785629-1014791613.1591158573#undefined

How do I correct this please so it doesn't show on the GST report?

Thanks,

Caroline

Steven_M
5 years ago
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.

Steven_M
Former Staff
5 years ago
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.
- Caroline_V
  Experienced User
  5 years ago
  Hi Steven_M
  
  I finally worked out how to fix this. The GST problem occurred when the Deposit was applied against the Order using Receive Payments, because the Order had S15 applied to it of course. There is nowhere to specify the GST code during that part of the process.
  
  My fix:
  1. Create new customer card to be used to adjust the GST (so it's kept separate from regular transactions). In the "Ship to" address field I put a description of what it was I was rectifying so it would show on the invoices.
  2. Create 1 new credit invoice under the new customer card for the 2 deposits with the NZ S15 GST code applied.
  3. Create 1 new debit invoice under the new customer card for the 2 deposits (GST inclusive amount) with the NZ N-T GST code applied.
  4. Apply the new credit against the new debit invoice.
  
  Now MYOB GST return is correct.
  
  5. Finally, I also had to do a General Journal entry to transfer the GST amount of $#### from the 2-1310 GST Collected Account to the 4-1900 Income/Sales account so that everything balanced correctly.
  
  Now the Total GST on the Balance Sheet is correct! 😊
  
  Hopefully this is helpful to others as well. Took me ages to nut it out.
  
  Kind regards
  Caroline
  - Caroline_V
    Experienced User
    5 years ago
    ... the only thing is it's showing the GST adjustment in the Sales [Customer Summary] Report and Analyse Sales [Customer] Report now for April. I can't edit/delete this amount from the Customer Card History for April because it's in the current FY (NZ) and the cursor doesn't select the amount for the current FY as it does for previous FYs. (Using AccountRight Premier NZ 2020.2.2 Build 2020.2.23.9038.)

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GST on Pre-Conversion Deposits incorrect

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