When constructing a general journal (GJ), you may have seen that tax codes cannot be directly assigned to the lines. You can only associate the actual tax (GST) amount in the total, directly to the tax account (eg GST Payable account), the taxable amount will not be able to associate with the tax account.
As an example if you were to entering a general journal of:
Debit Expense 900.00
Debit GST Payable account 70.00
Credit Bank 970.00
The Tax Agent (in the Name column) will be automatically associated with the tax account (GST Payable account) as according to your tax (GST) setting. Besides, you can select the relevant Tax (GST) Item at the Tax Item column.
The debit of 70.00 to the tax account (GST Payable account) will be updated in the Tax Agency Report (GST).
But note that GJs like this are best used for ADJUSTMENTS to tax accounts, because the transaction will not usually be included in Tax Code Detail and Summary Reports, as these gather data from anywhere a Tax Code is used, not when an amount is allocated to the account.
To include tax in the Detail and Summary reports for preparing BAS it is best to use the Invoice, Bill or Write Cheque transaction types instead of a General Journal.
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