When preparing a Business Activity Statement (BAS), you may see the following alert:
What are GST exceptions?
The amounts in this report represent transactions you have previously filed or lodged, but have since changed, deleted or added. This is to ensure that no GST collected (or credits earned) are missed or duplicated.
A few reasons for exceptions are if you make changes to:
- A transaction in a filed period. For example, one that has been added, edited or deleted.
- A GST code. QuickBooks will factor the difference between the amount filed and the new value, sometimes this can be a net 0 difference. For example, changing GST code 0% to be Exempt.
- The amount. QuickBooks will factor the difference between amount and filed and the new value.
- An income/expense account line. The net 0 difference will show.
- A customer/supplier. The net 0 difference will show.
How to create exceptions in QuickBooks
To create an exception:
- Delete a transaction to create a negative exception value
- Create a transaction to create a positive exception value
- Add another line item to an existing transaction
- Remove a line item to an existing transaction
- Change a GST code (this may cause positive or negative exception values)
If you are unlodging a BAS and need to create exceptions, you may want to consider moving them into your current BAS period, and setting the correct date once changes to the BAS have been made.