How to reconcile / categorise BAS payments? (Australia GST)

DanDan Member Posts: 10

Hi, I'm not entirely sure how to categorise my BAS payments after the transaction appears (through bank connection). I have been categorising it in 'Owners Investment / Drawings' currently...
Also a general question for any 'Owners Investment / Drawings' transactions ... do we need to change the category and account? Or just the category?

Thanks for any help

Comments

  • JordanDJordanD Administrator, Moderator Posts: 338 admin

    Hi @Dan

    Within the categories option, there should be the option to assign "Sales Tax Payment to Government" and it will then ask you to specify which Sales Tax it was a payment for.

    In terms of your Owner Investment/Drawings question, if you are using it for an owner's draw (money out of the business) you will want to select which business bank account the funds were moved out of. Oppositely, for the investment (money coming into the business), you would want to select bank account that the money was moving into the business to.

  • DanDan Member Posts: 10

    Hi @JordanFromWave , apologies for the delayed reply. I don't appear to have a category option "Sales Tax Payment to Government" ... when I click 'Add a new category' that doesn't exist? Any advice appreciated.

  • NeilRNeilR Member Posts: 14

    @Dan said:
    Hi @JordanFromWave , apologies for the delayed reply. I don't appear to have a category option "Sales Tax Payment to Government" ... when I click 'Add a new category' that doesn't exist? Any advice appreciated.

    You might have the old version of wave? They're upgrading Australia at the moment. I'm not an accountant but my understanding is that you would need to allocate the BAS Payment into is components that make up the payment. I would use the split function to split your bank transaction into the components.

    eg, A total payment of say $10,000 which is represented by GST Collected $8,000, GST Paid $1000, PAYG Withholding $2,000 and PAYG Income Tax Instalment $1,000, would be allocated as follows;

    GST Collected $8,000
    PAYG Withholding $2,000
    PAYG Income Tax $1,000
    GST Paid $1,000

    Create those as New categories if you don't have them

    edited January 21, 2019
  • DanDan Member Posts: 10

    Hi @NeilR , thanks for the comments.
    I have split the transaction into PAYGI and GST... but again I can't work out how to categorise the split transactions... In chart of accounts there is a 'Sales Tax Payable' under the 'Liability/Credit Card' section... but that doesn't show up in the transaction category options? Do I make a custom category under 'Equity' for GST and PAYGI?

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