How to claim Fuel Tax Credit in Reckon Accounts Business

Legacy KB ID: 5475

Question

How to I determine and claim the Fuel Tax Credit in Reckon Accounts?

Answer

Enter your manually calculated amount in the 7D and 7C boxes of the BAS Lodgement Form.

 

The Issue

The Fuel Tax Credit has a number of conditions attached and allows for a number of ways to calculate the claimable amount.  Users should discuss with their Accountant the best calculation method and consequently the best processes to undertake in Reckon Accounts Business.

Users should familiarise themselves with the ATO guide at: https://www.ato.gov.au/Business/Fuel-schemes/Fuel-tax-credits---business/
Note: A Calculator is available there to calculate the amount of your Fuel Tax Credit. 

 

The basis of your claim will be the volume of fuel used, so you will need Items (non-inventory items) to keep track of volumes purchased.

Header

Sub-Item

Fuels

Petrol – Equipment Use

Petrol - Agriculture

Diesel

LPG

These items can be assigned to either one ledger account, Fuels (expense), or they can be assigned to different accounts or sub-accounts.

  • Fuels
  • Petrol – equipment use
  • Petrol – agriculture
  • Diesel
  • LPG

You may want an Income account to record the Fuel Tax Credit Benefit to you or alternatively you may want to assign it back to your Fuels expense account

Warning: Seek your Accountant’s advice on the best way to handle this amount. 

 

Claiming the Fuel Tax Credit

Create a Report for your fuel items:

  1. Go to Reports > Purchased > Purchases by Item Detail.
  2. Next, modify the report. Click on Modify Report and then untick unnecessary columns, leaving only Type, Date, Quantity, and Amount.
  3. Then, select Modify Report > Filters > Item, and select Fuel from the options available in the list.
  4. Set the Date Range for the BAS period you are making the claim.
  5. Finally, click the Memorise button to save the report for future use.

 


Calculate the Fuel Tax Credit

Warning: You may want to use the ATO’s Fuel Tax Credit Calculator.

You may need to run several calculations, once for each fuel type and business use. Tally all your individual amounts for the 7D and 7C fields. 


Claiming the Fuel Tax Credit on the BAS Lodgement Form

Firstly,

  1. click on the Configuration button of the BAS Lodgement Form.
  2. Then, on the GST Configuration tab, tick the box Include FTC on this BAS, to unlock the 7C and 7D fields.

On the Debits and Credits tab, at fields 7D and 7C, enter your calculated totals for these fields. 

  1. 7D will reduce your BAS liability
  2. 7C will increase your BAS liability
Take note that these amounts will remain in these fields until you remove them. They will appear the next time you open the BAS Lodgement Form. 

 

Processing the Fuel Tax Credit in your ledger accounts.

When you use the option Suppliers > Tax Activities > Pay Tax, the net BAS amount will be booked against Tax Payable. Accept this to enter your BAS payment amount.

Next, enter a Tax Refund for the amount of the net Fuel Tax Credit (that is the amount of 7D minus 7C).

  1. Go to Suppliers > Manage Tax > Receive Tax Refund.
  2. Select the account to receive this amount. For example, Other Income – Fuel Tax Credits.
  3. Select the appropriate Date.
  4. Alter the memo to Fuel Tax Credit.
  5. Leave the From Account as Tax Payable.
  6. Enter the net amount in the Amounts column.
  7. click on Save & Close to complete. 


Need more help?

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

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

 

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