Decreasing / Adjusting the Tax Amount in the tax column in QuickBooks QBi 2008/09

Legacy KB ID: 310

Question

How do I Decrease / Adjust the Tax Amount in the tax column in Reckon Accounts?

Answer

*Note: If your Tax reporting is Cash basis, bills will need to be entered in at the time of payment.

In this scenario, the Bill is for $378.86 including GST.

The net amount originally entered is $344.44 and the tax is $34.42 as shown on the bill received from the supplier.

When you enter the transaction in Reckon Accounts, the net amount displays $344.44 but the tax amount displays $34.44

Create a Tax item for 100% tax amount for purchases and link it to the tax code. Fig.2

• From the List menu, select Tax Item List

• Click on Item and select New

• Choose Tax Item in the Type drop down list

• Enter a name for the Tax Item

• Enter a description if required

• Enter 100% in the Tax Rate (%) or Amt and select Australian Taxation Office in the Tax Agency

• Select Use this item in purchase transactions

• Select Goods and Services Tax in the Tax Return Line drop down

• Click OK

Create a Tax Code to link it with the Tax item.

• From the List menu, select Tax Code Lis

• Click on Item and select New

• Enter a Tax Code

• From the Taxable Information, select the Tax Item you just created in the Purchase Tax Item drop down list

• Click OK

Create a Tax item for a 0% tax amount for purchases and link it to the tax code.

• From the List menu, select Tax Item List

• Click on Item and select New

• Choose Tax Item in the Type drop down list

• Enter a name for the Tax Item

• Enter a description if required

• Enter 0% in the Tax Rate (%) or Amt and select Australian Taxation Office in the Tax Agency

• Select Use this item in purchase transactions

• Select Goods and Services Tax in the Tax Return Line drop down

• Click OK

Create a Tax Code to link it with the Tax item.

• From the List menu, select Tax Code List

• Click on Item and select New

• Enter a Tax Code

• From the Taxable Information, select the Tax Item you just created in the Purchase Tax Item drop down list

• Click OK

Now we need to decrease the tax amount by 2 cents, therefore you need to enter -0.02 on the next with the 100% Tax Code.

On the third line, enter 0.02 with the 0% tax code created to off set the reduced net amount as shown below:

    - Click Recalculate

The Tax Summary report will display the tax codes as shown below.

When configuring the BAS Report, you will need to select all Tax Codes used in the transaction (0%, 100% & NCG) in order for the figures to be correct.

Once you have configured the BAS Report, the following figures will be displayed:

Supplies and Acquisitions – G11 = $378
Debits and Credits – 1B = $34

Need more help?

Ask the Reckon Community at: https://community.reckon.com/

Or Log a Support Ticket: https://www.reckon.com/au/support/

How did we do?

Functions restricted to the Admin User

Error - QBW32.exe has performed IPF in spool32.dll

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