Tax Payable account shows only payments to the ATO.

Legacy KB ID: 4357

Question

Why does the Tax Payable account on the Balance Sheet show only payments to the ATO and not the transactions that appear in my Tax Reports?

Answer

You will see this outcome if you are displaying your accounts on a Gross basis and not Net basis.

When showing values as Gross, the GST tax component is included in those values.  There is no need to show the GST tax in a separate account.  Any payments of tax to the ATO will be the only ones presented in this account – this amount will in nearly all instances be a negative amount.

 

Workaround

Reckon Accounts is displaying information correctly.

 

To see the GST tax amount in the Tax Payable account on the Balance Sheet, you will need to set preferences to show sales on a Net basis.

  1. Edit > Preferences > Reports & Graphs > Company Preferences
  2. In Default Reporting, set Tax to Net.  Do not click OK
  3. Select the Tax preference and select Yes to the message;
  4. In the Company Preferences tab, for Sales figures, select Net;
  5. Click OK to Save. 

Your Tax Payable account will now show the balance - GST collected less GST paid less GST forwards to ATO, plus GST refunds, plus the net of any other transactions passed. 

 

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?

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