Hi Wendy (Sorry - Have only just had chance to reply. Haven't been on the forum in a while & was “replying” yesterday, but got interrupted!)
I would disagree slightly with Tupham - Your "Deposit" from the ATO in QBs MUST match the amt of refund you rcvd from the ATO, otherwise your bank acct won't reconcile!
Record your "Deposit" From: "Australian Taxation Office" , Account: "Tax Payable" of $ 1,845 to record the Refund. However, on the PAYG Tax Liab Chq, click on the “Expenses” tab & select the “Opening Bal Equity” acct, then enter the amount as -$ 2,550. (This creates a “0.00” Liab Chq amt, allowing you to ‘pay’ the PAYG & reduce that liability, but not record a monetary pymt amt from the bank acct.
I’d enter a relevant memo in all “Memo” sections too (eg “Oct-Dec 2011 PAYG ($ 2,550 - Offset by GST Refund)” )
Hi shazinoz, sorry to annoy you but have looked everywhere, bas refund
payg tax witheld $2550.00
gst sales $ 864.00
gst purchases $ 5259.00
refund $1845.00 entered thru (receive deposits from tax office from account tax payable)
and have done liability chq for payg $2550.00 but cannot get the rest in I know I am going to feel like a bimbo
Thanks ahead of time for your consideration
Hi Shazinoz have the answer Tupham answered it for me so simple really refund 5259.00 less 864.00 refund 4395.00 der
Apologies for my delay in responding - So flat out, I haven't been on the forum for a while ....
In answer to your question....
A "Deposit" is actually a "Liability" to the business as if the job is not done, the refund must be returned to the customer:
Create an Item called "Deposit Received" (no tax code), link it to a liability account called "Customer Deposits Held", then create a Sales Receipt in the customer's name using the "Deposit Received" item. When the job is complete, issue the Invoice for the full amount of the job (tax coded correctly) with a negative second line item of "Deposit Received". This will clear the liability account and leave the invoice for the net amount due. The liability account is reconcilable so that you always have an exact record of whose deposits are still outstanding.
I have been looking everywhere for this answer, even the ato but they get so confusing about everthing so I have come to you.
I work with a cash basis account
When I take a deposit on a job do I pay the gst when I take the deposit, or when the job is completed and invoiced.
Thanks for your help with this