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Beonelyn - Product Champion
Level 3
posted
‎June 19, 2020 10:36 AM
last updated ‎June 18, 2020 5:36 PM

How to Record BAS over payment made to ATO?

 
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Best answer June 19, 2020
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Beonelyn - Product Champion
Level 3
‎June 19, 2020 10:55 AM

How to Record BAS over payment made to ATO?

In some instance where an over payment has been made to ATO it gets hard to keep a track of that if not recorded correctly in QBO.

One of the product limitation of GST center is that we cannot record a payment of more than what is showing as due in the GST center. As a work around, please follow below steps

 

Step 1:    Create a clearing account and name it as "petty cash" with account type set as Cash and cash equivalents - Related steps on how to create a Petty Cash Account

Step 2:    Pay amount that is due in GST center from this newly created clearing account "petty cash" account.

Step 3:  Transfer full amount (that was paid to ATO including over payment) from Bank account to petty cash account.

Optional Steps

Step 4:   Now user has 2 options

a)       Leave the over payment in petty cash account and use it for next BAS. OR

b)      Create a journal entry to move over payment from petty cash to ATO clearing account to mimic ATO account. This will then show a credit and can be used for next BAS

 

Note: You will need to do a reversal journal before applying payment for next BAS if option b is used.

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1 Comment 1
Beonelyn - Product Champion
Level 3
‎June 19, 2020 10:55 AM

How to Record BAS over payment made to ATO?

In some instance where an over payment has been made to ATO it gets hard to keep a track of that if not recorded correctly in QBO.

One of the product limitation of GST center is that we cannot record a payment of more than what is showing as due in the GST center. As a work around, please follow below steps

 

Step 1:    Create a clearing account and name it as "petty cash" with account type set as Cash and cash equivalents - Related steps on how to create a Petty Cash Account

Step 2:    Pay amount that is due in GST center from this newly created clearing account "petty cash" account.

Step 3:  Transfer full amount (that was paid to ATO including over payment) from Bank account to petty cash account.

Optional Steps

Step 4:   Now user has 2 options

a)       Leave the over payment in petty cash account and use it for next BAS. OR

b)      Create a journal entry to move over payment from petty cash to ATO clearing account to mimic ATO account. This will then show a credit and can be used for next BAS

 

Note: You will need to do a reversal journal before applying payment for next BAS if option b is used.

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