Contents - Index

Setting up G.S.T.

Set up G.S.T. if your business is registered.  All departments of a company share the G.S.T. set up unless it is disabled for any department.  When running the G.S.T. imputation only those transctions for departments with G.S.T. enabled are included in the calculation.

Example - for sole proprietors only:

To use Retail Business to maintain a complete financial record for the household set up two departments, one for the business and the other wholly domestic. The business department is registered for G.S.T., the domestic "department" is not.

The above set up allows you to use joint bank accounts as the cash journal records the total income and expenditure.  This is necessary for tax purposes (both income and G.S.T.).  The total bank situation can be tracked for the complete household by printing statements for the "company".  If later you decide to create separate bank accounts it is possible to obtain a consolidated "company" bank statement, as well as separate reports for each "department".

Enter the correct information in the relevant fields.  
  • For G.S.T. to be calculated when entering transactions check the Registered box.  
  • The G.S.T. number displays on the imputation form, invoices, quotes and statements. 
  • The Exclusive field controls how G.S.T. is calculated and displayed on invoices.  Once you are using invoices this field should not be changed.  If you do any invoices printed with GST exclusive (for example) will now be printed as if it is inclusive and the figures will not be correct
  • The No. of Months field enables the system to calculate the beginning and end dates of G.S.T. periods automatically, based on the last G.S.T. return.

    See G.S.T. Imputation to for an explanation of running G.S.T. imputation.

    In the case of the Hybrid and Invoice basis you must maintain a record of the money you owe, and the money that is owed to you - hence you must use Debtors and Creditors.

    Cash Basis:

    G.S.T. is calculated based on cash transactions.  Invoices you issue and receive are ignored.  You can use creditors and debtors as an option to track what is owed and what you owe (and whether you can pay it).  If you produce invoices and record payments you must link those payments to the relevant bank transactions (using detailed transactions) or your income will appear much higher than it really is.

    Hybrid Basis :

    G.S.T. is calculated based on invoices you issue and cash expenses.  Use the debtors components of Retail Business.  Creditors is optional.

    Invoice Basis:

    G.S.T. is calculated based on invoices received and issued.  Use creditors and debtors and keep them current. In this case Professionals Retail Business makes no attempt to find cash payments made to you, or by you, prior to the issueing or receipt of an invoice.  It assumes that no money changes hands unless an invoice has been issued or received.  Use credits/debits and writeoffs to change the value of invoices when required.