Dealerlogic Accounting offers you an easy one step GST calculation for your Business Activity Statement reporting. Note that other reporting obligations for your BAS such as PAYG Instalment, PAYG Withholding, Fringe Benefits Tax, Wine Equalisation Tax and any other tax obligations must be calculated using normal reporting methods. The BAS report in Dealerlogic Accounting is compiled using the Tax Code or Codes associated with each transaction that you make in the Dealerlogic Accounting software. The BAS Calculation report can be viewed on window or printed. We recommend that the BAS Calculation report is only closed off at the end of an Accounting Period when your actual BAS return is being prepared for submission to the ATO. Closing off the Report any earlier than absolutely necessary will result in large numbers of Adjustment Entries appearing on the Change Log. This will also be the case if you alter transactions that have occurred in a previously closed BAS reporting period. The BAS Calculation report generated by Dealerlogic is not to be sent to the ATO, it is to be used to prepare your actual BAS return that is sent to the ATO. You can download instructions here The BAS Calculation report is a single page report containing the total values for each GST section required on the ATO BAS return. You can however select an option to print the substantiating data for the BAS Calculation report if you wish. |
If your annual turnover is less than $20 million, you can lodge your BAS quarterly or monthly to report your GST. Quarterly tax periods are periods of three months ending on 30 September, 31 December, 31 March and 30 June. Monthly tax periods end on the last day of each calendar month. However, if your annual turnover is $20 million or more, you must lodge your BAS and pay any amount owing every month (unless the Commissioner of Taxation allows you to lodge or pay in another way). In both circumstances your BAS return is due on or before the 21st day of the month after your monthly or quarterly tax period ends. You must set your accounting period in Dealerlogic before you can run a BAS Calculation report for the first time. From the Admin tab select Program Configuration. Select the GST Tab. Set the correct BAS start period (Dealerlogic will display the date range for the next BAS period and its due date for return to the ATO). |
Running the BAS Calculation report is only part of the process required to successfully complete a BAS return to the ATO. The BAS Calculation report should be run in conjunction with some other reports that will assist you in preparing your BAS return. Select General Ledger then BAS report from the Logic Centre or Dealerlogic menu. The BAS Report Window will appear (pictured above). Dealerlogic will set the starting and ending months for the BAS Report to the current reporting period. Alternatively, you can select a different starting and ending month for the BAS report by changing the starting and ending months or you can use the Current and Previous Period buttons to quickly change between reporting periods. Tick or untick the Include Substantiating Data check box. The Substantiating Data is the detail behind each summary section on your BAS Calculation report. If selected, the Substantiating Data is appended to the BAS report and details each transaction that you have made during the selected BAS reporting period (it could span many pages). Click the Run Report button. This will run the BAS preparation report together with the Substantiating Data (if you ticked the check box). The BAS preparation report will preview on screen prior to printing and can be run and previewed as many times as you like without affecting your BAS reporting period. If you wish to print the BAS preparation report, click the Print button on the Print Preview window |
Dealerlogic constructs the BAS Preparation Report by cycling through all transactions in the date range specified, analysing the Tax Codes, and determining the GST implications. In contrast, as each transaction is created and saved the GST (either collected or paid) is allocated to the appropriate GST control account in the general ledger. That means the software has an inbuilt checking function which should be used to confirm your BAS before you send it off. Once you’ve printed the BAS Preparation Report, run a Balance Sheet using the same end date as the BAS period. So if your BAS is being prepared for July – September 2003, then run a Balance Sheet up to September 03. Check the GST Control Accounts to Sections G9 & G20 on the BAS Preparation Report. Your General ledger account GST Collected (originally account number L-14110) should show the same as the value at G9 on the BAS Report, and the account GST Paid (originally account number L-14120) should show the same as the value at G20 on the BAS Report. There are 3 main reasons for variations: The BAS Preparation Report contains only those transactions within the date range specified, whereas the General Ledger accounts contain the accumulated total, so if transactions have been entered for prior BAS periods since the last report was done there will be a variance. In this case the General Ledger is likely to be correct. Check this by re-running the BAS Preparation Report for the period immediately prior to the current one, and compare it to the one you printed at the time. This will highlight any additional transactions that should be manually included in the BAS you’re doing now. Note: Prevent this occurring in the future by “locking” a date range once you’re done and sent your BAS. E.g. after doing the BAS for the period ending 30/9/09, go to Accounting, Setup, Preferences, and select “Prevent changes prior to date” and enter 01/10/09. This will prevent any changes occurring after the BAS has been done. Once the BAS Preparation report has been checked and the final BAS Statement prepared for the ATO, the amounts in the General Ledger account should be cleared out when the payment/refund is entered. If these amounts are not cleared out for each period they will simply accumulate, and therefore will not reconcile to the BAS Preparation Report. Instructions for preparing a clearing entry follow this section. Your Tax Codes are not correctly setup for the BAS within the “Setup BAS Tax Codes” screen. If new Tax Codes have been created but not included in any section of the BAS, then the amounts for them will be correctly recorded in the General Ledger but will not appear on the BAS Preparation Report. Check you’ve correctly linked all Tax Codes using the information on page 68. Other varied reasons for discrepancies include Opening Balances being incorrectly entered, journal entries inappropriately being made into the GST Control Accounts etc. |
After printing the BAS preparation report you will be prompted to make a decision to either close or leave open your current BAS reporting period. How do I do this? If you want to leave the BAS reporting period open, type the word LATER into the field provided on the Close BAS Report window. If you want to close the BAS reporting period, type the word CLOSE into the field provided on the Close BAS Report window. If you mistakenly close a BAS period too early, the result will be that when the BAS Report is next run, the following reporting period dates will appear by default. Additionally, editing or adding transactions in a closed BAS period will display a warning, and also the BAS Change Log will accumulate any transactions altered within the closed period. The correct period can still be reported again with full and correct data by changing the date range back to that required. |
In order to be able to reliably reconcile the General Ledger GST Control Accounts to the BAS Preparation Report, it is vital the control accounts are “cleared” for each BAS that is processed. As a transaction must be entered to represent the payment to or from the ATO, it is appropriate this transaction be used for this purpose. In most circumstances, the BAS Statement you send to the ATO will cover a number of Taxation Reporting obligations other than GST, such as these: PAYG Withholding (the tax you withhold out of salaries & wages) PAYG Instalment (what they call the Company Tax “lay-by” payments you make) Fringe Benefits Tax Deferred Company Tax (what you had left to pay in June 2000). All of these items can be included in the single BAS Clearing Transaction for the period. From your completed BAS Statement determine whether you are paying the ATO, or they are paying you. |
If you are paying the ATO, from the Purchases tab, open an Enter Bills transaction and select the ATO’s card from the card file. For the transaction date, enter the last date of the period to which the BAS relates, as in our previous example of the BAS July to Sep 09, enter 30 September 2009 not the date you actually make payment. This permits very simple reconciliation of your GST Control Accounts. Enter a description for each line item that represents the type of TAX you’re reporting, see Fig 1 below. (Note that in this case the GST Collected will be a positive figure, whereas you must enter GST Collected as a negative.) For each line item select the appropriate account and ensure the Tax Code for each line is ’GNA’. Note that GST, and (if you use Dealerlogic Payroll) PAYG Withholding will have been accumulated in Liability accounts so must be drawn from there. In contrast, FBT is allocated to an expense account, PAYG Instalment is generally allocated to an “Other Expense” account and Deferred Company Tax is allocated to a Liability account. Please consult your accountant if unsure of the correct accounts to use. This advice is based on the “Default Chart of Accounts” included in Dealerlogic and may not be appropriate to you. Once you’ve entered each type of Tax as a line item from the BAS Statement, the Total of the Purchase should be equal to the net amount you owe the ATO. If so, press Process. If not, compare your BAS Statement to the transaction you’ve entered to determine what’s missing. Once the Bill has been entered, all Tax transaction have now been recorded within the period to which they relate, and transferred to Accounts Payable. To record your payment to the ATO, use a Vendor Payment transaction and process using the actual date of payment. |
If the ATO owes you money, from the Sales tab, open a General Sale transaction and select the ATO from your card file. For the transaction date, enter the last date of the period to which the BAS relates, as in our previous example of the BAS July to Sep 09, enter 30 September 2009 not the date you actually make payment. This permits very simple reconciliation of your GST Control Accounts. Enter a description for each line item that represents the type of TAX you’re reporting, see Fig 2 below. (Note that in this case the GST Collected and any other amounts you owe to the ATO will be a negative figure, whereas you must enter GST Paid as a positive.) For each line item select the appropriate account and ensure the Tax Code for each line is ’GNA’. Note that GST, and (if you use Dealerlogic Payroll) PAYG Withholding will have been accumulated in Liability accounts so must be drawn from there. In contrast, FBT is allocated to an expense account, PAYG Instalment is generally allocated to an “Other Expense” account and Deferred Company Tax is allocated to a Liability account. Please consult your accountant if unsure of the correct accounts to use. This advice is based on the “Default Chart of Accounts” included in Dealerlogic and may not be appropriate to you. Once you’ve entered each type of Tax as a line item from the BAS Statement, the Total of the Sale should be equal to the net amount owed by the ATO. If so, press Process. If not, compare your BAS Statement to the transaction you’ve entered to determine what’s missing. Once the Sale has been entered, all Tax transactions have now been recorded within the period to which they relate, and transferred to Accounts Receivable. To record your payment from the ATO, use a Customer Payment transaction and process using the actual date of payment receipt .
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Stock Items purchased with a “Notional” ITC type are handled quite differently from other purchases. Notional Input Credits apply when a second-hand stock item is purchased from a private individual, where there is no ABN quoted, and where the supply is of a private nature. Obviously no Tax Invoice is supplied by the vendor of the stock item. An Input Credit is available applicable to the purchase of the stock item, but: 1.The Input Credit is not available until the stock item is sold (unless the stock item is purchased for less than $300), and; 2.The Input Credit cannot be greater than the GST payable on the ultimate sale of the stock item, thereby the GST available as an Input Credit is calculated on the lesser of the purchase or sale price. Stock items are not included in Sections G11, G12, G17, G19 or G20 until the stock item is sold and the Notional Input Credit is available regardless of the purchase date. |