Home – New Forums Money matters Splitting a portion of sales for GST reporting

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  • #973229
    MarkS
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    Hi all,

    This is my first post here so I apologise if this question should belong elsewhere.

    I run an iPhone application development studio and am paid by Apple each month for sales I make internationally and in Australia. Payment is wired directly into my bank account as one lump sum amount. The problem is, only a portion of this amount must adhere to GST requirements so i’m trying to work out the best way of managing this through an accounting package (i’m keen to use Saasu).

    When I import my bank statement to Saasu and categorise these transactions, I can either select that they include GST or not. Now i’m not sure if i’m missing something obvious (and I admit I’m very new to accounting processes), but is there some way for me to split this transaction into GST and GST-free income?

    Any help would be greatly appreciated.

    Thanks

    Mark

    #1060502
    Anonymous
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    Hi Mark,

    Welcome to the forum :)

    I’m sure one of our trusty number crunchers will be along shortly (or perhaps after the weekend) to give you some advice.

    In the meantime, I wanted to apologise that your post got held up in our moderation queue.

    All the best,
    Jayne

    #1060503
    MarkS
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    Thanks Jayne, and I apologise for potentially posting a duplicate.

    I made some changes to the transaction in Saasu by adding the Australian portion of the sale on an additional line, then modifying the first line by deducting the Australian portion. I’m not sure if this is the right thing to do but it balances and all GST-related reports are accurate from what I can tell.

    #1060504
    King
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    not being familiar with your accounting package, but in mine I have a culumn for international sales (GST FREE) and Aust sales (GST INC). The accounting package then only assigns GST for the sales from australia.

    The trick is if the payments you receive have the sales identified in such a way as to allow this breakup (ie is it total sales or itemised)

    If itemised it should be fairly straightforward

    #1060505
    StellarScott
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    MarkS, post: 74773 wrote:
    Thanks Jayne, and I apologise for potentially posting a duplicate.

    I made some changes to the transaction in Saasu by adding the Australian portion of the sale on an additional line, then modifying the first line by deducting the Australian portion. I’m not sure if this is the right thing to do but it balances and all GST-related reports are accurate from what I can tell.

    Sounds like you have it right Mark

    Other option would be to create an invoice first with the splits as you’ve described and applying payment when received.

    Trust SAASU is working for you

    Now time to amend my signature to show I’m a partner

    #1060506
    MyGreatIdea
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    StellarScott, post: 74794 wrote:
    Now time to amend my signature to show I’m a partner

    As in a new partner, Scott? If so, congratulations !! and another post to go into the “Yay” thread :)

    Wendy

    #1060507
    RapidEntryBiz
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    As Scott recommended, creating an invoice first removes the need to categorise the receipt when its received, which resolves the issue if you know what you are going to receive. Often with commissions, you dont and if this is the case you’ll need to manually code the reciept each time it comes in as you have done. So, good work!

    Cheers
    Dianne

    #1060508
    MarkS
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    • Total posts: 9
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    Thanks all, I’m glad the process I’m using is right.

    Another quick question, how should I categorise the quarterly BAS payments on my bank statement? I guess they’re not technically an expense so I don’t want them to be seen as such. Similarly, what about the yearly tax return payment?

    (sorry for the newbie questions) :)

    #1060509
    StellarScott
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    Mark

    BAS payments are definitlely not an expense

    If you look at your balance sheet you will see 2 accounts

    Asset : Tax Paid on purchases
    Liability : Tax Collected from sales

    These should net to your BAS payment and the payments coded here

    If you have deducted tax from employees and paid this appropriate account is
    Liability: PAYG Installments Payable

    Treatment of income tax payments accountants would depend on whether your accountant has processed the end of year adjusting entries but should be an expense in year tax arose

    #1060510
    StellarScott
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    Couple It, post: 74800 wrote:
    As in a new partner, Scott? If so, congratulations !! and another post to go into the “Yay” thread :)

    Wendy

    Thanks couple it. when I get 10 new clients on saasu then its time for the double yay thread

    #1060511
    MarkS
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    StellarScott, post: 74831 wrote:
    Mark

    BAS payments are definitlely not an expense

    If you look at your balance sheet you will see 2 accounts

    Asset : Tax Paid on purchases
    Liability : Tax Collected from sales

    These should net to your BAS payment and the payments coded here

    If you have deducted tax from employees and paid this appropriate account is
    Liability: PAYG Installments Payable

    Treatment of income tax payments accountants would depend on whether your accountant has processed the end of year adjusting entries but should be an expense in year tax arose

    Thanks StellarScott. Does that mean I effectively ignore this on the imported transaction (i.e. delete it) as it has been calculated automatically?

    By the way I’m loving Saasu, so much easier than another product I used to use.

    #1060512
    RapidEntryBiz
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    Mark, you could benefit from some back office and bookkeeping advice to put you ‘in the know’. There are many issues like this that will come to light as you progress in your business. Dealing with each and every one, one by one is not the most desireable way to tackle the problem. Wouldnt you prefer a lesson coupled with a manual for reference and some backup for help on these issues from someone who knows your business?

    Cheers
    Dianne

    #1060513
    MarkS
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    • Total posts: 9
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    Hi Dianne, that would certainly help me although I think the best option would be for my tax agent to login to my saasu file to see how things have been set up.

    In the meantime, I’d love to know exactly what I should do with these BAS transactions and how to record them. The saasu help file recommends adding them to a purchase account but that doesn’t seem right.

    One additional question, are these international sales (digital software downloaded through Apple who pays me in AUD) considered Export sales or GST-free sales?

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