Income received March 2020, Refunded income June 2020. How do I make GST amendments to correct the BAS statement for March period?

Hi eo2, 

Typically when making changes to a prior BAS period the best way forward would be a Journal Entry. This would not change that account's balance, but would allow the changes to be picked up by the GST centre when you come to prepare your BAS, helping achieve the figures you are looking for.

You can see the steps to complete this below: 

1. Select the + New button and select Journal entry. Enter a date that falls in the BAS period you are preparing. 
2. On Line 1, enter the account you'll be using for an adjustment (if you have a clearing or adjustment account already set up, you can use this, or create a new one. Speak with your accountant if you are unsure on the account type you should use). Enter the amount you need to make the adjustment by, then select the tax code you need to adjust for. Enter a description for the journal.
3. On Line 2, enter the same account used for Line 1. Enter the same amount to balance the journal, and enter the tax code Out of Scope. Enter a description, then select Save.
    

This journal creates an 'amendment' that will then reflect in the totals of the BAS you are marking as lodged. However before saving, I would encourage you to reach out to your accountant or bookkeeper to ensure this work around supports your books. After completing the journal you can look through GST Exemption Report to find your newly created amendment showing, which can be found with these steps here.

While the journal entry method provided will 'amend' your totals and achieve the goal you are trying to attain, we are unable to advise what is best for your books as we are not accountants.  

Thanks, 

-Steven

Is this correct?  The bottom is calculating the GST on the GST amount or do I need to put the actual amount refunded that results in the GST amount being $1838. see below

Based on the instructions above this is the correct journal as you are balancing out the GST amounts between the bank account and the BAS/GST Liabilities Account. This journal creates an 'amendment' that will then reflect in the totals of the BAS you are marking as lodged. When saved you can run an amendment report which can be found by: 

1. Select the GST tab
2. In the top right, select Run Reports, then select GST Amendments
3. This will show you of all the changes as of the present date for past BAS lodgements you have changed. 

Once again while the journal entry method provided will 'amend' your totals and achieve the goal you are trying to attain, it would be best to reach out to an accountant or bookkeeper to confirm this is the correct accounting method for your business. 

QBO isn't rounding BAS amount properly, it is just dropping the cents even if they are $0.83. 

I need to adjust the GST amount somehow by 17 cents so I can get the bank payment to ATO to match the BAS amount.  (Note I am not using QBO to file electronically with ATO, hence the discrepancy).  

Hi there, Senta. QuickBooks calculates GST on a line-by-line basis and rounds each line item's tax to the nearest cent. This can sometimes lead to slight discrepancies when adding up the totals for multiple items.

Additionally, QuickBooks uses two decimal places for rounding. For example, $0.833 is rounded down to $0.83, whereas the ATO may use different rounding rules, such as rounding $0.833 up to $0.84.

Transactions involving smaller amounts or fractional cents can make these rounding effects more noticeable. Over time, these differences can accumulate and cause mismatches.

To fix this, you're correct in making a manual adjustment to align the BAS amount with your ATO payment. You can consult your accountantto ensure compliance.

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