When I enter a Transfer between two accounts or an asset purchase, the tax does not appear on the BAS or on the Tax Reports

Legacy KB ID: 2878

Question

When entering a transfer between two accounts (i.e. for the purchase of an item) which includes a GST amount, the transaction or the Tax amount does not appear in the BAS or in the various Tax Reports. Why?

Answer

CashBook will only report GST on the BAS or on the Tax Reports when an income or expense category has been applied to the transaction.

Therefore, when entering a transfer between two accounts, to report a GST amount it is necessary to complete three split lines: Firstly a line detailing the transfer account and amount. Secondly a line with a category to which the relevant Tax Code is applied. Lastly a line with a negative amount to balance line two without the tax.

- Go to the Finance > Category + Transfer List
- Click on the New... button and name the new category "Transfers", the type being Expense. Do not assign a Usual tax code.
- Save this and go the register of the account in which you wish to record the new Transfer transaction
- In the Register, enter the Date, Transaction Type, Name and Amount including Tax, then click on the Splits button
- On the first line,  select the Account to which you wish to transfer the amount (i.e. an Asset account) and assign the NET amount (total excluding Tax) to this line
- On the next line, select the new Transfers category and assign to this the amount of the transfer including a tax code. This line should now have the correct tax amount on it.
- On the third line, select the Transfers category again, and set the amount to be the negative Net amount of the transaction. There should now be no remainder displaying at the bottom.
- Click the OK button and then the Enter button to record the transaction

How did we do?

What should I do at the end of the year (fiscal or calendar)?

Gain/Loss figure in Capital Gains Report changes continuously

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