Maintenance Tasks

9.5.1 Account Maintenance: Journals – BAS Returns

If your Fund is registered for GST, you will want to complete a BAS return at the end of each period.

Begin by verifying that all GST credits and debits have been entered correctly. You can do this by first clicking the EXPENSES tab to note all expenses incurred during the period:

Expenses_listforBASexampleNote which expenses relate to the relevant period.

If your fund is registered for BAS as a non-cash entity, you should also check, in the same way, for any LIABILITY entries in the relevant period that may include a GST component.

Clicking ACCOUNTING under the Setup menu will display the totals in GST Paid, GST received and GST Clearing accounts:

Accounting_GSTaccountsbals_withcollected

Click on the underlined Account Number to view detail of the entries.

Accounting_GSTPaidDetail


NOTE:

For guidance on entering the GST component of expense payments, please see 7.1.1 EXPENSES: ADD NEW EXPENSE – ACCOUNTING FOR GST. For guidance on entering the GST component of unpaid creditor invoices, please see 5.1.1 LIABILITIES: ADD NEW LIABILITY – ACCOUNTING FOR GST. 

If you have raised debtor invoices that include GST, please see RECEIVABLES for guidance on entering the GST component of debtor invoices. If you have received income that includes GST (for example, rent paid by a tenant in a commercial building), please refer to 6.1.1 INCOME – RECORDING GST for guidance on recording the GST component of income received.


When you are confident that all of the GST components of income and expense entries have been correctly recorded and are showing in the GST accounts, click GENERAL JOURNALS (at the top of the Accounting page) or go to Journal Entries on the Setup Menu and click ADD NEW JOURNAL ENTRY.

Mclowd displays the Journal Entry screen.

Liabilites_Journalentry

You will want to first transfer GST Paid debits to credit the GST Clearing account and GST Received credits to debit the GST Clearing account. This will reveal the total GST amount you owe, or the any GST credit the ATO owes your fund.

On the first line:

  • Select Fund under MEMBER ACCOUNT/FUND.
  • Select 2-1000 GST Paid in the ACCOUNT column.
  • Enter ”GST paid for <period>” in the DESCRIPTION column.
  • Enter the total amount of GST paid during the period in the CREDIT column.

On the second line:

  • Select Fund under MEMBER ACCOUNT/FUND.
  • Select 2-1010 GST Collected in the ACCOUNT column.
  • Enter ”GST collected for <period>” in the DESCRIPTION column.
  • Enter the total amount of GST received during the period in the DEBIT column.

On the third line:

  • Select Fund under MEMBER ACCOUNT/FUND.
  • Select 2-1020 GST Clearing in the ACCOUNT column.
  • Enter ”GST totals for <period>” in the DESCRIPTION column.
  • Enter the total amount of GST received.
    • If GST Paid exceeds GST collected, this will be entered in the CREDIT column.
    • If GST Collected is greater than GST Paid, this will be entered in the DEBIT column.

JournalEntries_clearGSTatperiodend

Check that the Out of balance figure at bottom left is 0.00 and click ADD JOURNAL ENTRY to save.

This will clear the balances of your GST Collected and GST Paid accounts as at the end of the period. (There may be residual balances showing in the accounts as at the current date if you have already made entries to account for GST paid or collected in the current period.)

Next, you will want to clear the GST Clearing balance, add any PAYG liability, and transfer the total amount due to the ATO (or refundable from the ATO) to your Tax Payable account.

 

The first line entry will be the reverse of the entry in the previous step. If your GST Clearing entry was a Debit (the ATO owed you a GST refund), you will enter a CREDIT in this step. If your GST Clearing entry was a Credit (you owed the ATO for GST collected), you will enter a DEBIT in this step.

Enter details of any PAYG obligation (as advised by the ATO from time to time) in Row 2, selecting the account 2-1101 Income Tax PAYG Instalments Paid.


CAUTION: It is important to enter PAYG instalments paid correctly, as you will want to claim a credit for these payments on your Fund income tax return.


In Row 3, select the account 2-2100 Sundry Creditors and enter the total balance, rounded as is required by the ATO. This ensures that when you enter your payment or refund received, the debt or credit shown in Sundry Creditors is fully cleared.

In Row 4, allocate the cents balance left when you rounded to 5-1190 Over and Unders.

 

BAS return example

If your total debits exceed credits, you should enter the balance in the CREDIT column. You will need to pay this amount to the ATO.

If your total credits exceed debits, you should enter the balance in the DEBIT column. You will claim this amount as a refund from the ATO.

BAS return example credit

Check that the Out of balance figure at bottom left is 0.00 and click ADD JOURNAL ENTRY to save.

To enter your payment to the ATO or receipt of a refund, please refer to 9.5.2 JOURNAL ENTRIES: PAYMENT OF BAS or 9.5.3 JOURNAL ENTRIES: ENTERING A BAS REFUND.


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding.
Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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