This article is for customers who are creating a new business file and have outstanding receipts/payments from the old business file that are required to be entered as outstanding transactions to the new file.
NOTE: This is a perfect time to review all outstanding transactions from the old file. Do they all need to be added to the new file? We suggest you seek advice from your Accountant if you are unsure.
On the first day of the starting month for the new business file, the outstanding transactions will need to be entered. Depending on how the business reports GST to the ATO, i.e Cash or Accruals, will dictate how the transactions will be entered into the new business file.
How to enter outstanding transactions on Cash Basis
For businesses claiming GST on a cash basis, enter outstanding debit or credit transactions with a transaction date as on the first day of the starting month for the new file. The GST for these transactions will be claimed in the BAS period once cleared to the bank statement (reconciliation process).
Remember, for cash basis reporting to the ATO, the GST is claimed or paid to the ATO once transactions are entered and cleared to the Bank Statement in Agrimaster.
A cheque or invoice sent on 30 June from the old file might only be cashed or paid in the next financial year (new file). When the cheque or invoice clears in the new financial year, i.e: 14 July, the GST will be claimed.
How to enter an outstanding transaction on an Accruals Basis
For businesses claiming GST on an accruals basis, the GST on any outstanding transactions should have been claimed in the old file (previous BAS) in the previous financial year. If you are uncertain, double-check with your Accountant.
Enter outstanding debit or credit transactions with a transaction and invoice date as on the first day of the starting month for the new file. When adding outstanding transactions you will also need to over-ride the GST category to GST Free if the GST has been claimed in a previous BAS period. Ensure you enter detailed notes for the accountant and future reference.
Remember, for accruals reporting to the ATO, the GST is claimed or paid to the ATO once any EFT's, invoices, and transactions are added to Agrimaster (they can be outstanding or cleared to the Bank Statement).
A cheque or invoice sent on 30 June from the old file might only be cashed or paid in the next financial year (new file), i.e: 14 July. As the GST would have already been claimed in the old file/BAS period, it cannot be claimed again in the new financial year.