Tax Transactions

The Tax section is split into three categories:

  • Tax Returns and Reports
  • Tax Adjustments
  • Tax Payments and Refunds

Tax Returns and Reports

In Sage One Accounting you are required to manage your BAS Calculations using the Tax Returns and Reports screen.

To access the Tax Returns and Reports screen, click on the Accountant’s Area…Tax…Tax Returns and Reports menu option.

Click on the Next button to continue.

Enter your Company ABN Number.

Each BAS period requires a submission and typically ends on the last day of the month with the submission typically due on the 25th of the following month. Enter your last BAS Period End Date and your last BAS Submission Due Date. We will use these dates to determine your next BAS Period End Date and when your next BAS is due.

Click on the Next button:

Click on the Finish button.

Purpose of the Tax Returns and Reports Screen:

GST and BAS are strictly regulated areas of any business and keeping your figures accurate, reliable and up to date is essential to avoid issues with the authorities. With the Tax Returns and Reports screen you will be able to control all of your BAS reporting from one central place.

Your BAS reporting does not always correlate to your financial reporting. Sometimes you will record transactions in one month and only account for the GST in another month, this can often happen if you are behind on your processing.

With the Tax Returns and Reports Screen you will assigning transactions to particular BAS periods, and not specific date ranges.

Benefits of BAS Periods:

  • These should agree to what you actually submit to the ATO.
  • Amounts owing should agree with the ATO payments that you have made.
  • Transactions that relate to closed BAS periods will be locked to no changes to transactions can be made after submission.
  • Back dated transactions will pull through to the current BAS Period (i.e. no missing of transactions).

The screen will display a list of all of your BAS Periods detailing relevant information pertaining to each period:

  • Tax payable or refundable for the period
  • Associated payments and refunds made for each period
  • Quick links to the GST Calc.(BAS) and Tax Report relevant to that period

The following screen will be displayed:

The table below will explain all the fields on the screen above:

Field Explanation
Close Tax Period If you select the Close Tax Period button, Sage One will close off the current BAS period that you are working in and move over to the next BAS period.
Reopen (a previous Tax Period) Reopening a Tax period should only be done if your intention is to resubmit your BAS to the ATO. For Example: All transactions in the BAS for 12/2013 will be unmarked as finalised and you will be able to edit these transactions. Any transactions that have been back dated prior to and including 31/12/2013 and that have not been included in any other BAS will be included in the 12/2013 BAS once you close this BAS period.
Start Over? If you select this option, all of your BAS will be removed and you will have to set it up again. The values for each return may differ to the actual returns you have submitted to the ATO. Please be careful before selecting this option. Consult with your financial practitioner.
View (Previous GST Calc.) This option allows you to view the BAS report for a previous BAS Period.
View (Previous Tax Report) This option allows you to view the Tax report for a previous Period.
Payment/Refund You can allocate your ATO payments or refunds to the correct BAS period by selecting the Link Payment and Link Refund option.

You will also have access to your standard BAS Reports via the Reports button:

Tax Adjustments

In the Tax Adjustments screen, you are able to adjust either the input or output Tax (explained earlier in the manual).

You can make adjustments to the amount of tax that you owe or are owed. You should therefore be certain of the amount you enter. All tax adjustments will be included on the Tax Report.

You will need to specify whether the adjustment you are processing will affect Input Tax or Output Tax.

The following table will help you remember when input and output Tax applies:

Tax Type Explanation
Output Tax If you sell items to customers, which means items (stock) are leaving your business, it is referred to as output tax.
Input Tax If you buy items from your suppliers, which mean you are receiving items (stock) into your business for resale or business use, it is referred to as input tax.

Your accountant will process the required tax adjustments for your business.

  • Select the Accountants Area…Tax…Tax Adjustments menu option.
  • The following screen will be displayed:

Tax Payments and Refunds

Business Activity Statements (BAS) must be submitted to the ATO on a regular basis, and will either indicate that you need to pay tax or receive a refund.

Since the tax laws of your country govern Goods and Services Tax processing, it is of extreme importance to ensure that you process the adjustments, payments and refunds correctly.

Sage One Accounting will calculate your tax for you as shown below. Your Input Tax is calculated by establishing the GST included on all purchases – item and non-item based – that you have processed in Sage One Accounting. Next, your Output Tax is calculated by working out the GST included in all of the sales – item and non-item based – that you have processed in Sage One. The difference between the two is the amount of tax that you owe. If your input tax is higher than your output tax, you will be due a tax refund.

You can process Tax payments and refunds that will automatically create a payment or receipt to your selected bank account.
You will see a tax summary for the date range you have selected. To view any payments or refunds already processed print the Tax Payments and Refunds report. Any payment or refund processed in the date range you have selected will be excluded from this summary as they are considered to be payments or refunds pertaining to a previous tax period.

In the Details screen, you will edit the date for the transaction and the bank account that will be affected. You will then enter the Reference and Description for the transaction. You are able to edit the value of the amount in the Detail section of the screen; however, this is not recommended.

To process the Tax Payment, click the Finish button.

The Different GST Types

The supply of all goods and services attract GST unless the goods or services are tax-exempt. Certain goods and services attract GST, but the purchaser is not allowed to claim the GST input.

It is recommended that you check with your accountant or on the ATO website if you are unsure what GST code to use.

https://www.ato.gov.au/Business/GST/

The GST Calculation Report

Tax Reports

Tax Report

A Tax report lists tax transactions for reporting purposes. This report is also available in the Reports menu. You have the option to print the report in detail or in summary, with or without tax adjustments. You can also include payments and/or refunds in the report. You can set if the report must offset all the credits on sales or purchases.

Each Tax Report can be run either by Tax Period or by a selected Date Range.

You have the selection to preview the report as monthly, quarterly, yearly, month to date, quarter to date, year to date, life to date, custom to date, last month, last quarter and last year. If you select the custom dates option, you can select the date ranges from the calendar look up fields.

Check the Offset Credits on Sales / Purchases check box to offset credits against sales or purchases. Uncheck the check box to show these separately. This option only applies to customer and supplier credit transactions.

Tax Payments and Refunds Report

This lists the payments made and refunds received from the ATO.

Tax Summary Report

This report gives you an overview of your tax position either per period or per month.

Tax Transactions Report

This is a detailed report showing the transactions making up your Tax Payable and Tax Provision balance. You may either see only Tax Payable. Tax Provision, or Both by selecting the drop-down option against Ledger Account.