GST Correction is the second method that can be used to correct or adjust any GST.
A GST correction should be used when you have mistakenly recorded a transaction with the incorrect GST category in a past period.
- Corrections will be allowed only to transaction splits that are marked as belonging to a closed period.
- If the mistake occurs in the current GST period, the corrections can be made through editing the record concerned in the Transactions section (if in the current cashbook month).
- If the cashbook month is closed and GST period is opened, you can make the corrections through Find and Edit.
- If the cashbook month is closed and the GST period is closed, you can make the corrections through Repair Past (from the cashbook menu).
Example scenario will be used to show you how to enter a GST correction.
You have recorded a GST free item as Standard category. In previous BAS returns, you have been recording the third party insurance on licenses as Standard, therefore, claiming input tax credits you are not entitled to. You have realised this, and must use a GST correction to change the GST category for the split to GST free.
In this example, the GST correction will appear under the normal Taxable Supplies (Standard) list on the GST detailed report and the GST included total added to the figure at G1 on the BAS.
To Enter A GST Correction
- From the Home page, click Cashbook.
- Click Repair Past.
- Click Repair Transactions.
- Click Find & Edit to search for the transaction to be corrected.
- In the Select Transactions To Find window, enter the transaction details that you know to search for the entry to be corrected. Click the green tick.
- In the Repair Past Transactions window, select the transaction you wish to change by highlighting it. Click the Edit button.
- In the Edit Cashbook Transaction window, select the split you wish to change the GST Category on.
- In the Amount $ on the far right of the screen, highlight the amount of the split.
- Click the (=)Select category to edit the split’s GST.
- Click on the dropdown arrow to select the required GST category.
- Click the green tick to save.
- A message similar to this one will appear.
- Click Yes to transfer the adjustment required to the current BAS.
- Click No to save the transaction, record changes but will not include adjustment on the current BAS. This would be chosen if you had already made the adjustment manually on previous BAS but did not correct the transaction itself.