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Alltrades1's avatar
Alltrades1
Experienced Cover User
6 years ago

GST (Cash) Report does not match Profit & Loss (Cash)

I have just prepared a GST (Detail - CASH) Report for Oct-Dec 2018 and a Profit & Loss (CASH) for Oct - Dec 2018 and it's saying I received $13636 excl. GST more than the Profit & Loss is saying. I ...
  • Steven_M's avatar
    Steven_M
    6 years ago

    Hi Alltrades1 

     

    I would agree that it does look like the relevant transaction that may be causing the difference. Although, the program is correct in what it is doing and what I would expect to occur when you do have a deposit transaction on an order.

     

    When you record an order no accounts are affected, it is only when the order is converted across to an invoice that the accounts are affected. So when you make a payment that payment is placed into a holding account situation until it is pushed across to the invoice hence the transfer from deposits.


    In terms of reporting the GST [Detial - Cash] report is looking at the actual payment transactions to determine when to report the value. This is because it is looking at the tax codes on the transaction and the actual payment transactions to determine the value. The Account Transaction [Cash]/Profit and Loss [Cash] the system does look at the transfer from deposit transaction, as this is when you have actually charged the accounts. This does mean that you do will have a difference between those reports. The only that they would be the same would be if the invoice was dated the same date as the payment.

Steven_M's avatar
Steven_M
Former Staff
6 years ago

Hi Alltrades1 

 

The GST [Cash] report will look at the dollar values associated with the tax codes, the Profit and Loss [Cash] will look at cash-based transactions that are recorded to income, cost of sales and expense accounts. This does mean that you may have a difference in those reports if you have recorded a cash-based transaction that solely affects a balance sheet accounts (asset, liability, equity accounts). 

What I would recommend doing it running the GST [Detial - Cash] report for the selected period and also run the Account transactions [Cash] report - Reports>>Accounts>>Small Business Entity.  These reports will show the individual transactions that make up the two report amounts. You would be looking for a transaction(s) that appears in the GST [Detial - Cash] report but not in the Account transactions [Cash] report. You could then investigate that transaction and the accounts involved in that transaction to see if a Profit and Loss account was affected.

  • Alltrades1's avatar
    Alltrades1
    Experienced Cover User
    6 years ago

    Hi Steven

     

    Thank you for your help I printed out the Account Transactions (Cash) Report and found the culprit but I'm not sure on how to handle the missing Item as it looks like it went into Deposits Paid but didn't come back out. Do I just do a Journal Entry to bring it back into Sales?

     

    I have attached a screen shot of the Transaction

    • Steven_M's avatar
      Steven_M
      Former Staff
      6 years ago

      Hi Alltrades1 

       

      I would agree that it does look like the relevant transaction that may be causing the difference. Although, the program is correct in what it is doing and what I would expect to occur when you do have a deposit transaction on an order.

       

      When you record an order no accounts are affected, it is only when the order is converted across to an invoice that the accounts are affected. So when you make a payment that payment is placed into a holding account situation until it is pushed across to the invoice hence the transfer from deposits.


      In terms of reporting the GST [Detial - Cash] report is looking at the actual payment transactions to determine when to report the value. This is because it is looking at the tax codes on the transaction and the actual payment transactions to determine the value. The Account Transaction [Cash]/Profit and Loss [Cash] the system does look at the transfer from deposit transaction, as this is when you have actually charged the accounts. This does mean that you do will have a difference between those reports. The only that they would be the same would be if the invoice was dated the same date as the payment.

      • Alltrades1's avatar
        Alltrades1
        Experienced Cover User
        6 years ago

        Hi Steven,

         

        I went back and had a look at the Profit & Loss (Cash) for July to Sept and the GST Summary (Cash) same period

        and it looks like the Profit & Loss shows Sales as $13636.36 more than the GST Sales and this quarter Oct to Dec shows the Profit & Loss Sales $13636.36 less than the GST Sales. So something has happened were it has recorded one of the $15000 deposits in the period of the Invoice even though they were paid in the next quarter (Cash Basis). I thought it was a bit strange that some Deposits Paid have gone to Trade Debtors/Deposits and back and some haven't.

        So it will still all work out by the end of the financial year.

        Thanks for your help

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