Recording BAS Payments & PAYG Instalments

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   How do you record the cheque to the ATO for your BAS payment?
What about the GST credits � where do they go?

The GST payment will include a GST payment and perhaps a PAYG Withholding payment and / or a PAYG Instalment payment.

From your BAS reports, you have figures for GST PAYABLE and GST CREDIT to enter on your BAS form.

If, for example, 1A (GST PAYABLE) is $8000, and 1B (GST CREDIT) is $4500
The total $8,000 in GST PAYABLE is �paid� partly by the GST CREDIT of $4,500 The balance you then pay to the ATO with a cheque or direct debit for $3,500. 

To process the $4,500 in GST CREDIT off the GST PAYABLE, use a Journal entry 
Credit GST CREDIT                             $4500
Debit  GST PAYABLE.        $4500
Date the transaction the last day of the GST period, eg March 31^st

You can �Store� a copy of this journal entry as a Standing Journal, so you don�t have to work out each quarter which one gets the credit and which gets the debit.
Once stored, you can retrieve it, change the date and the amount and process it.

To record the payment of the cheque to the ATO:

With a net GST Payable of $3500 and PAYG Withholding of $2400 
You send a cheque for $5900
Record the cheque in General Payments 

Alternatively you could process the payment via General Journals, and save it as a Standing Journal (as above) for future use

Select the Bank Account the payment is made from
Date this transaction the day you sent the cheque.

In the details of the entry:

Ledger GST PAYABLE                       $3500 
Ledger PAYG PAYABLE                    $2400 

It is possible for the Nett GST amount to be negative if you have a lot of purchases for the period, but still are paying the ATO the balance of the PAYG.
You are effectively receiving a refund of the �extra� GST Credit amount
Enter the PAYG amount as the appropriate PAYG amount. 
Then enter a negative amount to the GST CREDIT ledger

If you don�t have PAYG, and receive a refund for GST credits for the quarter, record the amount under Receipts in the General Ledger, going against the GST Credit ledger.

Edited by Susmita - 16-Jan-2007 at 00:29

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Guests Members Profile Find Members Posts Guest	Post Options Post Reply Quote Guests Thanks(0) Quote Reply Topic: Recording BAS Payments & PAYG Instalments Posted: 15-Jan-2007 at 01:06
	How do you record the cheque to the ATO for your BAS payment? What about the GST credits � where do they go? The GST payment will include a GST payment and perhaps a PAYG Withholding payment and / or a PAYG Instalment payment. From your BAS reports, you have figures for GST PAYABLE and GST CREDIT to enter on your BAS form. If, for example, 1A (GST PAYABLE) is $8000, and 1B (GST CREDIT) is $4500 The total $8,000 in GST PAYABLE is �paid� partly by the GST CREDIT of $4,500 The balance you then pay to the ATO with a cheque or direct debit for $3,500. To process the $4,500 in GST CREDIT off the GST PAYABLE, use a Journal entry Credit GST CREDIT $4500 Debit GST PAYABLE. $4500 Date the transaction the last day of the GST period, eg March 31^st You can �Store� a copy of this journal entry as a Standing Journal, so you don�t have to work out each quarter which one gets the credit and which gets the debit. Once stored, you can retrieve it, change the date and the amount and process it. To record the payment of the cheque to the ATO: With a net GST Payable of $3500 and PAYG Withholding of $2400 You send a cheque for $5900 Record the cheque in General Payments Alternatively you could process the payment via General Journals, and save it as a Standing Journal (as above) for future use Select the Bank Account the payment is made from Date this transaction the day you sent the cheque. In the details of the entry: Ledger GST PAYABLE $3500 Ledger PAYG PAYABLE $2400 It is possible for the Nett GST amount to be negative if you have a lot of purchases for the period, but still are paying the ATO the balance of the PAYG. You are effectively receiving a refund of the �extra� GST Credit amount Enter the PAYG amount as the appropriate PAYG amount. Then enter a negative amount to the GST CREDIT ledger If you don�t have PAYG, and receive a refund for GST credits for the quarter, record the amount under Receipts in the General Ledger, going against the GST Credit ledger. Edited by Susmita - 16-Jan-2007 at 00:29