Software: Reckon Accounts (formerly known as Reckon QuickBooks)
The GST that has set in the Reckon QuickBooks 2007/08 or earlier version will migrate to the Reckon QuickBooks 2009/10 or latest version. However, if you tried creating a new company file in Reckon Accounts, the default GST items and code have localised to Australia.
Unlike the earlier version, which has customised with a 7% standard rated GST, you are required to add the relevant GST code in the new file that you have created.
The GST set up consist of a GST account, a Tax Agency, GST Items, and GST Codes.
Instead of using the default Tax Payable account, which has associated with the default Australia Tax Agency, you may create a new GST account (such as GST Payable), in the Chart of Account list. Then, add a new Tax Agency (name it as Comptroller of GST) and link both the “Track tax on purchases separately to” and the “Track tax on sales separately to” fields to the GST account, which you have created earlier.
Then, create the Tax Items (you may consider naming it as 7P for input GST and 7S for output GST) from the Tax Item list for both the Input and Output tax with the GST rate (7% for the 7% standard rated GST) and link it to the Tax Agency. Lastly, from the Tax Code list, create the GST Code (you may consider naming it as “7” for 7% standard rated code) and link the Tax Item(s) to it.
How does the GST work?
When you have entered a Sales Invoice with a standard rated Tax Code, it will link to the Output tax item, which you have tagged in the Tax Code. Then, the tax amount will post to the tax account, which you have linked via the tax agency.
1. To add an account: Lists menu > Chart of accounts
2. To add a Tax Agency: Suppliers menu > Supplier centre
3. To add a Tax Item: Lists menu > Tax Item List
4. To add a Tax Code: Lists menu > Tax Code List