Category Archives: QuickBooks 2009/10

Setting up the GST in Reckon Accounts

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.

QuickBooks GST

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.

 

Note:
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

 

QuickBooks | Split

Software: QuickBooks accounting software

In the List report, such as General Ledger report, you may see some transactions labelled as -SPLIT- under the Split column.

split

What does “Split” mean?

Split means that there are more than one GL accounts associated with the transaction. For example, a cheque transaction for Rent expense account with GST associated may show as “Split” in the Bank account. The double entry for this transaction will be:

Debit Rent expense account

Debit GST liability account

Credit Bank account

You need to zoom into the transaction to find out more about which account it posted to.

Since most of the transactions will have a “Split”, I usually remove this column.

QuickBooks | Other Debtors

Software: QuickBooks accounting software

Some User may like to have both Trade Debtors and Other Debtors accounts in the Balance Sheet report rather than having an Accounts Receivable account that capturing both types of debtor account.

To manage both Trade and Other Debtors, you can add a new Accounts Receivable type of account and name it as Other Debtors.

If you have Other Debtors account in foreign currency, then, you may name it such as Other Debtors (SGD) for Singapore dollar or Other Debtors (USD) for US dollar.

When creating invoices to your other debtor, simply select the Other Debtors Accounts Receivable account from the Account drop down list.

Other Debtors

The double entry will be debt Other Debtors account (Balance Sheet) and credit your Income account (Profit & Loss).