Question: My question is regarding MYOB Accounting and how to handle GST. I notice when you close off the end of the financial year the balances are brought forward for GST to the new year. Please advise the accepted way to reconcile the GST Collected, GST Paid, and GST Payment/Refund accounts.
Answer: The GST balances always roll forward to the new year. This is because they represent an amount that should be returned to, or claimed from, the IRD at a later date. These balances are calculated on the Invoice basis (necessary for proper accounting entries to occur) so if you are on the Payments basis for GST the amounts rolled forward to the new year are unlikely to match your next GST return. Some users like to “clear” the GST account balances after each GST return so that the individual accounts carry only the current period balances – this can be done by journal entry but is not strictly necessary. Use the GST Reconciliation report to compare your GST balances with the total of the GST transactions for the period. If you would like help in learning how to do the journal entry to clear the balances, or how to reconcile the balances to the Payments basis, you may like to ask your accountant or a certified consultants for more detailed assistance.
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I would like to know how I can reconcile my GST report against P & L and balance sheet changes over the 2 month period. We are on an accruals system but can’t get sales to match with the gST report nor GST expenses with the GST outgoing costs. please help!
Hi Rhonda
Most companies don’t bother doing this reconciliation and providing you “Lock your period at month end” then nothing should change. I have an Excel sheet with a rec you can do – will send it to you. Let me know how you get on..
Rgs Lynley
Hi Lynley,
I am also interested in your excel sheet! Could you please send it to me as well.
Much Appreciated
Marcela
Hi Lynly,
I am also interested in your excel spreadsheet. Please send it to me as well
Thanks
Paul
Hi Paul
Sent
Rgs Lynley
HI, Lynly,
Sorry to bother you too, but could i have the excel spreadsheet too? I am invoices basis, does it help too?
Many thanks.
Jady
Hi Lynly
Can I have a copy sent as well
Thanks
Hi Lynley,
Can you send me your gst worksheet.
Thanks
Jan
Hi
The excel sheet has only one calculation but will load it onto the site for those who need it (check Monday).
Rgs
Lynley
We have a client who is de-registering for GST. Is there any protocol to follow with changing their MYOB settings to cope with this?
The only setting to change would be under GST Code information. Change 12.5% to 0% so that future invoices and any disbursements contain 0% GST from the beginning of the deregistration period.
Found an interesting article on GST registration incidentally.
Hi Jady
If your on invoice basis then you don’t need to calculate your way back to the GL accounts – I suggest you use the company data auditor (GST section) to check that the GST reports agree with the GL (if they don’t then you have issues which need to be looked at.)
Rgs
Lynley