Non-cash adjustment is one of the ways in which GST can be corrected.
Non-cash adjustments should only be used when there is a change in the proportion of personal or private use of an item you have claimed in a previous BAS period.
Example scenario will be used to show you how to make a non-cash adjustment.
In a previous BAS return, you purchased a computer for $3300 and claimed a refund of 100% of GST amount of $300 paid (GST Standard at 10%). This means you are claiming 100% use for business usage. Six months later, you realise the computer has only been used for 50% of business use.
The following entry should be made in the GST Non-Cash Flow Adjustments window, shown below.
To Make A Non-Cash Adjustment
- Click Cashbook.
- Click Report.
- Click Tax Reports.
- The Tax Reports window will display. Select Enter GST Adjustments (Non-Cash).
- Enter the details as required, using the information provided in the example above.
- Click the green tick to save and you will be returned to the Tax Reports window.
- If you would like to check the GST non-cash adjustment, you will need to click Enter GST Adjustments (Non-Cash).