Sales Tax (GST) Report

The sales tax (GST) report lists transaction line items that fall within various categories designed to assist in the lodgement of a Business Activity Statement (BAS).

Options

The report has the following options:

• Mode (cash or accrual accounting for tax purposes)
• BAS item (see below)
• Date range (defaults to the current reporting period as configured in settings)

General Criteria

The following criteria applies to all line items in the report:

• Date of the transaction must fall within the reporting period
• Transactions must be in the processed state
• Accounts must belong to the general chart of accounts for the business

BAS Items

Total Sales (incl. GST)

This corresponds to the G1 figure on the BAS. All amounts are inclusive of GST.

Cash

When reporting on a cash basis, sales are determined by allocations to invoices; typically by debtor receipt (DRR) or trust-to-debtors transfer (DRT) transactions. Other debits to cash accounts (e.g. asset/property sales) are not included and must be determined by other means.

Criteria for line items:

• Must credit Accounts Receivable aka debtors
• Must debit a cash account (Bank, Escrow, Credit Card Merchant or Petty Cash purposes)¹
• Must allocate to one or more invoices (only the amount allocated is considered part of the sale)

Accrual

When reporting on an accrual basis, sales are determined by the invoices themselves. Other credits to income accounts are not included and must be determined by other means.

Criteria for line items:

• Must debit Accounts Receivable
• Must credit Professional Services, Disbursements, Interest or Other Invoice Items¹

Line items corresponding to discounts also appear under this item (as negative amounts):

• Must credit Accounts Receivable
• Must debit Discounts¹.

Sales Not Subject to GST

This corresponds to the G3 figure on the BAS. It is a subset of Total Sales (above).

Cash

Additional criteria for line items:

• Invoice allocated by the line item must not charge GST (each invoice appears on a separate line)

Accrual

Additional criteria for line items:

• Sales tax component must be zero

GST on Sales

This corresponds to the 1A figure on the BAS.

Criteria for line items (same for cash and accrual):

• Must credit Sales Tax aka Goods and Services Tax

Capital Purchases (incl. GST)

This corresponds to the G10 figure on the BAS. All amounts are inclusive of GST.

Cash

When reporting on a cash basis, purchases are determined by cash payments; however, in the case of creditor payments, allocations to creditor invoices are required in order to classify them as either capital or non-capital.

Criteria for line items:

• Must credit a cash account (Bank, Credit Card, Escrow or Petty Cash purposes)
• Must debit a capital asset account¹

Line items corresponding to creditor payments also appear under this item:

• Must credit a cash account
• Must debit Accounts Payable aka creditors
• Must allocate to one or more creditor invoices (only the amount allocated is considered part of the purchase, the capital component is calculated pro-rata)
• Capital component must not be zero

Accrual

When reporting on an accrual basis, purchases are determined by cash payments; however, creditor payments are substituted with creditor invoice journals to reflect when the costs were incurred.

Criteria for line items:

• Must credit either a cash account or Accounts Payable
• Must debit a capital asset account¹

Non-Capital Purchases (incl. GST)

This corresponds to the G11 figure on the BAS. All amounts are inclusive of GST.

Cash

Criteria for line items:

• Must credit a cash account (Bank, Credit Card, Escrow or Petty Cash purposes)
• Must debit either a non-capital asset account or other (non-asset) account, excluding Accounts Payable, Provision for Sales Tax and Sales Tax¹

Line items corresponding to creditor payments also appear under this item:

• Must credit a cash account
• Must debit Accounts Payable aka creditors
• Must allocate to one or more creditor invoices (only the amount allocated is considered part of the purchase, the non-capital component is calculated pro-rata)
• Non-capital component must not be zero

Accural

Criteria for line items:

• Must credit either a cash account or Accounts Payable
• Must debit either a non-capital asset account or other (non-asset) account, excluding Accounts Payable, Provision for Sales Tax and Sales Tax¹

GST on Purchases

This corresponds to the 1B figure on the BAS.

Criteria for line items (same for cash and accrual):

• Must debit Sales Tax aka Goods and Services Tax

Footnotes

¹ Line items can be excluded by marking the account as non-reportable for GST purposes.