Will resolving PAYGW amounts to "BAS Roundoff Gain or Loss" account affect the profit or loss? I paid ATO 3786.00 but QB calculation was 3786.45. Can I disregard the .45

Hi Yasar,

Yes, this will affect your profit and loss due to it being an expense account. 

You can test this on your file by going to the chart of accounts and finding the BAS Roundoff Gain or Loss account. By default, it should be an expense account.

Check if you need to disregard this amount with either a bookkeeper or accountant to be sure.

Kristian

Hi Kristian,

The situation arose because PAYGW amounts submitted to the ATO are entered in whole dollars but the "PAYG Withholdings Payable" account has a cents component. ($3876.45).

I basically wanted to update the "PAYG Withholdings Payable" to be reduced by $0.45 so that when I make the match in the bank statement, the account is balanced.  Is there another account that I can resolve the $0.45 amount so that is does not affect the profit or loss? 

Kind regards,

Yasar

Hi Yasar,

When you marked the BAS or IAS as lodged. the journal entry for the lodgement should have already accounted for the rounding off gain/loss.

Can you check the journal entry for the lodgement and confirm? 

Kind regards,

Kristian.

Hi Kristian,

I don't use the GST lodgement function in QB online as I found it too complicated.  When submitting the quarterly BAS returns on the ATO Business Portal, I obtain the GST amounts from the GST Summary Report  and PAYGW amount from PAYGW Summary Report.

I then make a payment to the ATO from the bank account and then match transaction to the "PAYG Withholdings Payable" account code. However at this point, the amount in QB is $0.45 more than the amount in the bank statement and I would like to know which account should I allocate this amount to without any affect on profit/loss.

Thanks,

Yasar 

Hi Yasar,

I believe this is why the rounding off gain/loss was not automatically accounted for. Whatever account you use, it will affect the books.

If you choose the BAS Roundoff Gain/Loss, this account will affect the Profit and Loss report since it is an Expense account.

If you choose to use an Asset/Liability/Equity account, this will affect the Balance Sheet.

Unfortunately there is no way around this.

Hope this answers your query.

Kristian.

Hi Kristian,

So what is the purpose of the account "BAS Roundoff Gain/Loss"?  

I would assume this account would be the most suitable for my situation when matching the PAYGW payment to the "PAYG Withholding Payable". So after I match the bank statement amount to this account  (PAYG Withholding Payable),  it will still have $0.45 remaining.  If I then match the remaining $0.45 to the "BAS Roundoff Gain or Loss" will this amount be an expense? If it is an expense (it's classified as "other expense"), would it reduce the profit.

Kind regards,

Yasar

Hi Yasar,

You may still use the BAS Roundoff Gain/Loss account for the $0.45 that is left. 

The correct way to do this would be to follow these steps:

1. Go into the GST tab and record the payment there (whole amount)

2. Go to your bank account in Quickbooks to select the payment and click on Find Match 

3. Select the Tax Payment from the list of matches and then click on Resolve Difference 

4. Chose the BAS Roundoff Gain/Loss for the category and select Out of Scope for the GST component 

5. Click Save

This will appear in your profit and loss but since you over-recorded the GST payment it should all balance out in the end.

Kristian.