Is there anyway to have the functionality of gst included in transactions? Expenses and Income? I have not been able to add the gst component through the sales tax feature. Do I need to subscribe to enable that feature? Thank you....
You would have to add the GST as a sales tax and then add it to transactions that are affected by GST as well. Can you tell me a bit more about the issue you're running into?
Note that the price of your items on invoices will always be before taxes. Taxes will be added on top of that amount on the invoice. It isn't currently possible to calculate taxes backwards from the total of a line item on an invoice.
How do I add GST to an expense? I have added the GST, GST Free and N-T codes and they only works on invoices not expenses? Please help asap
Hey @peter_lawbrokers and welcome to the Wave Community Forum!
If you are looking to add a Sales Tax to an expense, you can do so straight from the transactions page. In the Transaction Detail panel that opens to the right of the transaction when you select it, you should have the option to add a Sales Tax to it.
The answer to the original question in this thread contained the statement that "It isn't currently possible to calculate taxes backwards from the total of a line item on an invoice" Australian GST regulations do not require suppliers to state the amount of GST included in some invoices. It would be a very useful improvement to be able to post the total amount of a suppliers bill, add the tax code and then have Wave calculate the amount of GST included. Are there any plans to introduce this feature?
Hey there @beancounter
Not that we've heard of at the moment but I do appreciate your feedback as our dev team usually scours these threads for future updates.
I would like to add my request to the one above from beancounter. In Australia suppliers must make the invoice out for the total amount including GST. It is therefore essential to have an accounting program that calculates the GST component of expenses backwards. Has there been any further consideration of this request?
Isn't that what JordanD has said how to do in his reply ?
We have GST here in Jersey which is on all invoices we receive, once I import the invoices/payments I manually go to the entry as JordanD has explained and select the GST option (we set up) for 5% GST on purchases and it creates the entry and calculates the GST paid on that invoice.
In the Reports Account Transactions (general ledger) I can select a filter for my created GST on purchases and run a report on how much GST we have paid out.
Hey @Sonia9180 , can you explain what you mean by calculating backwards? Are you saying that the price itself needs to already include the GST instead of having it added to the price? A deeper explanation would be great so I can have a better understanding.
Hi AlexL, thanks for your question. Yes, the price needs to already include GST. Unfortunately in Australia the law is that we quote prices and make out invoices with the GST included. Generally a service or item costs a round figure (including the GST) ... for example $100 and then the GST is calculated backwards as being $9.09. Funny way to do things, but it is actually illegal to quote a price without including GST. So, in terms of our needs from a bookkeeping program, ideally we need to be able to add the expense including the GST and have the program calculate it backwards. Hope that makes sense.
Hey there @Sonia9180
This is interesting to learn about and thanks for posting this in our community. I apologize that this is something that our system cannot do at this time. I wonder if you can do this manually. For example:
Create a product for $100 (gst included, but don't add this to your invoice).
The income account will show a full $100 without GST, but if you then create a journal transaction to move the funds ($9.09) from income and account (debit) and then credit it to your GST account this would show up in your account transactions (general ledger) report. It won't however appear in your sales tax report unfortunately.