The following are some questions and answers on GST issues that may interest you. You can discuss and collaborate on ideas with other Synergetic users on the Synergetic forums (http://www.synergetic.net.au).
Can ABNs be of 14 digit as well as 11 digit length?
Synergetic has an 11 digit ABN optionally able to be stored on the Creditors table. However the ABN Supplied field is used to determine whether withholding tax is deducted or not. You can select this field providing you can supply the ATO with proof that the supplier has supplied an ABN or does not need to supply an ABN. You can use the creditor Comments field if you need to record further details concerning this.
When should withholding amounts from creditor payments due to failure to provide an ABN be remitted to the ATO?
Withholding amounts due are stored in a control account. It is just a matter of paying the balance from this account as at the date applicable to the ATO. Or you could remit at the same time - by preparing a prompt invoice to the ATO allocated to the control account. The BAS processing module will automatically pick up any payments due from this control account, in which case you will not need to separately prepare a remittance.
What does Synergetic do with payment summaries for amounts withheld from creditors due to failure to provide ABNs?
We have not yet been provided with details of what is required here but we are aware of this and plan to provide an automatic method of producing these summaries when the requirements are made known to us.
The tax office has indicated that a form is available. They have indicated on their web site that:-
"When you pay the remaining 51.5 per cent, you should give the supplier an original and a copy of a Payment summary. The supplier will need to attach the copy of the Payment summary to their tax return. You are able to get Payment summary forms later by phoning the business Tax Reform Infoline on 13 24 78. If you want to create your own, it must contain:
- Your business name and ABN or withholding number
- The name of the supplier, and address if you have it
- The total amount invoiced
- The amount you withheld
- The date you paid and withheld, and
- Your signature or that of a person authorised to sign for the business.
Keep a copy of the Payment summary to help prepare your annual report for Pay As You Go withholding when no ABN is quoted"
This must be completed manually (at least at this stage).
This section is to confirm the process required in Synergetic for processing (say) supermarket tax invoices or where the supplier rounds down the GST charged.
If the GST amount is less than 1/11th of the total invoice amount then either the invoice also includes tax free goods (such as food) or the supplier has rounded down the GST amount - probably to the next lowest 5 cents.
If the invoice includes TAX FREE goods then you will need to do two allocations. One for the GST portion (multiply the GST by 11 to give you the tax inclusive amount) and post this to tax code "10". Subtract the tax inclusive amount from the invoice amount to give you the tax free amount and post this to tax code "F".
If the invoice is fully for GST goods then you will only need to be concerned about the GST being rounded if you process the invoice with the Prices Include Tax field not selected. You should only have this check box not selected if individual lines on the invoice are shown without GST included and there is a separate figure for GST that is ADDED TO THE INVOICE TOTAL at the bottom of the invoice. If the GST amount calculated by Synergetic is different to the amount calculated by the supplier (this should normally be only a cent or two) then click Tax Adjust to automatically post the difference to the Tax on Expense Control account).
Synergetic BAS generation rules.
Without wanting to go into the fine detail of BAS generation in Synergetic, the following are some discussions we have encountered.
When looking at the classification codes that have been automatically populated note that current assets have the code ASSETC. There should be a luGeneralLedgerClassification listing of ASSETF with a Synergy Meaning of Asset. Any postings to accounts with this classification will appear on the Asset line G10 of the BAS.
However, you do not need to use the general ledger classification (of ASSETF) to denote an asset transaction. If you have a Tax Code set up with a Synergy Meaning of 'Asset' (for example, Tax Code = AST) then this will not only process the GST correctly but it will also denote that this is an asset transaction.
Question | Answer |
|---|---|
luGeneralLedgerClassification attributes only three SynergyMeanings: ASSET, EXPENSE and INCOME. | Any posting with a tax code will appear on the BAS. If the account does not contain one of these classifications then Synergetic attempts to work out whether it should put the amounts concerned on the INCOME or EXPENSE side of the BAS. In General Ledger Journal Entry you can specifically identify which classification should be used. That way you can journal across an INCOME credit to the EXPENSE side if required. |
It was understood that asset classification would operate to split a transaction between the acquisitions and supplies sides of the BAS. Is this still the case? | Asset purchases (through Creditors module) go to G10 and other appropriate categories on the acquisitions side. Asset sales (through General Ledger receipts) get added to Supplies side. |
Notwithstanding the processing rules in the BAS rules document I assume that the figures in G9 and G20 will directly tie up to the amounts in the relevant GST clearing accounts for the month in question? | Will only vary by any direct adjustments posted to these accounts. This might occur if a supplier prices their invoice lines without GST and has a total for GST added at the bottom. The GST total in this instance might not be the same figure that Synergetic has calculated. The ADJUST button is used to post the difference. |
GST account codes
Before you can use Synergetic for financial processes you will also need to add accounts for GST on Income Clearing, GST on Expenses Clearing, GST Payments Control account and Supplier Taxes Withheld Control account.
These accounts must also be identified on the General tab of Finance Configuration Maintenance. See Synergetic Financial Configuration - General tab (on page ). We recommend that you place these in the "4" series and put them all together so that they can be easily checked that they have been set up correctly.