Free Accounting Software + Tax Returns, BAS, Bookkeeping and Payroll from Free Accounting Pty Ltd

Free Accounting Software Forum - Entering sales items ex gst

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02/08/2012
Great app by the way, getting use to it quickly now. Just another question, can I enter a sale ex gst and get it to calc accordingly ?
e.g. I enter sale item value of 100, application fills in gst of 10, and total of 110
10/08/2012
The amount is always entered inclusive of GST. The amount is always the amount that you are paying or receiving. There are a couple of reasons:

1. It's best to be consistent so that things are simpler.

2. If it's 100% tax as when taxes are paid to the ATO then the net would be zero and if the tax rate was applied to the net amount then it wouldn't calculate anything.

Also note that the amount is the amount you are paying or receiving. That means gross for GST purposes but for PAYG Withholding it means you have to enter two lines a gross payment and a separates deduction for tax withheld. The system does this automatically on the pay slip entry.

So technically speaking it's not actually entered gross or net it's the amount paid or received that is entered. I've decided that entering an amount different to what is being paid or received would be confusing.
 

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