Table of Contents

Tax Settings

In the Tax settings area, there are three sections:

  • General
  • BAS details
  • Tax codes and groups

General Tax Settings

 

Open Reckon One >   > Settings > Tax settings (section) > General

 

General section enables / disables GST (VAT in UK) tax tracking. Provides selection of BAS / VAT reporting basis default and default tax accounts and editable settings. Complete the required fields and information for the book. Click on Save to return to the Settings overview.

 

 BAS Details

Open Reckon One >   > Settings > Tax settings (section) > BAS details

 

BAS details section is used to set preferences for the book relating to the business’s BAS requirements. Complete the required fields and information for the book. Click on Save to return to the Settings overview.

 

 

 

Tax Codes and Tax Groups

Open Reckon One >   > Settings > Tax settings (section) > Tax codes and groups

 

Tax Codes and groups contain all active and inactive tax codes within the book. 

 

 

Click on a tax code to open the properties and edit. The bottom of the screen gives you GST summary and BAS label related information. Click on Save & close to return to the Tax codes & groups overview.

 

 Reporting adjustment notes as cash

This setting only relates to books where Reporting basis is set to Cash basis.

Reckon One has two options for reporting supplier and customer adjustment notes (aka credit notes) when a business has elected to report on a cash basis. A business can chose to either treat adjustment notes as cash whereby adjustment notes will appear in all cash-based reports, or exclude adjustment notes from cash-based reports. That is, adjustment notes will not be treated as cash.

Reckon One report settings

The difference between cash and non-cash (accrual) reporting

If your business reports on a cash basis, a transaction is not recognised in your cash ledger until cash is received. In other words, if you create an invoice for a customer and date it 30 June, but do not receive payment until 7 July, you are not required to pay GST or tax on that amount until 7 July (or the reporting period that 7 July falls within). However, if you report on an accrual basis, GST and tax is due for the date the invoice was dated, being 30 June in the previous example.

Although adjustment notes are not cash, their treatment can vary when reporting on a cash basis. From [insert date] Reckon One will allow the business to decide which option to use, and will default to [insert in-product copy] for all new books created on or after this date.

Below are examples of the effects on a cash ledger based on your treatment of adjustment notes.

The decision on which option to select can have GST and tax implications. Before changing this setting, we recommend you obtain advice from your tax accountant or registered BAS agent.

Cash basis reporting where an adjustment note IS NOT considered cash

Transaction

Payment

Effect on cash ledger

Type: Invoice

Date: 30-June-2022

Amount: $100

Type: EFTPOS

Date: 7-July-2022

Amount: $100

$100 posted to increase sales on 7-July-2022

Type: Invoice

Date: 30-June-2022

Amount: $100

Type: Adjustment note

Date: 7-July-2022

Amount: $100

Cash ledger does not report the invoice or the adjustment note

 

Cash basis reporting where an adjustment note IS considered cash

Transaction

Payment

Effect on cash ledger

Type: Invoice

Date: 30-June-2022

Amount: $100

Type: EFTPOS

Date: 7-July-2022

Amount: $100

$100 posted to increase sales on 7-July-2022

Type: Invoice

Date: 30-June-2022

Amount: $100

Type: Adjustment note

Date: 7-July-2022

Amount: $100

$100 posted to increase sales on 7-July-2022

-$100 posted to decrease sales on 7-July-2022

Net effect = $0 (zero)


Need more help?

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

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

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