Enter a GST adjustment

The amount of GST or input tax credits for the sale or purchase of services or goods that was entered in a previous tax period can be changed by later events. To adjust the net amount of GST in the current tax period so your BAS reflects the correct amount, you can create a journal entry.

Increase the net amount of GST

1. Go to General Ledger > All > and select Add (circle) beside Journal entries.
2. Enter the required fields in the header, and:
   1. For Tax implications, select Inbound taxes for purchases.
   2. Leave Supplier and Contact blank.
3. Enter a line item.
   1. Select the appropriate Account for the adjustment.
   2. Enter the amount of the GST adjustment in Transaction debit.
   3. From Tax detail, select Input Tax Credit Adjustment.

      The Rate appears as 0.00 and the Transaction tax is calculated at 0.00.

   Do not change the value of Transaction tax. The BAS will only be calculated correctly if the value is left as 0.00.
4. Enter a second line to balance the transaction credit. Then, select Post.

Decrease the net amount of GST

1. Go to General Ledger > All > and select Add (circle) beside Journal entries.
2. Enter the required fields in the header, and:
   1. For Tax implications, select Outbound taxes for sales.
   2. Leave Customer and Contact blank.
3. Enter a line item.
   1. Select the appropriate Account for the adjustment.
   2. Enter the amount of the GST adjustment in Transaction credit.
   3. From Tax detail, select GST Payable Adjustment.

      The Rate appears as 0.00 and the Transaction tax is calculated at 0.00.

   Do not change the value of Transaction tax. The BAS will only be calculated correctly if the value is left as 0.00.
4. Enter a second line to balance the transaction debit. Then, select Post.