GST
How to upgrade successfully
An overview of the GST Upgrading issues
Trouble shooting GST issues
Will the GST issues we have in 08/10 be fixed by
upgrading to 09/10?
NO!
Will my GST upgrade correctly when upgrading from 07/08
to 09/10?
No!
So lets look at how we can make sure GST does upgrade
correctly.
Upgrading GST to 08/09 and 09/10
Checks & Changes to make in 07/08
Default Tax Code
Ensure a Default Tax Code has been allocated in preferences
Tax lines
Tax lines are correctly assigned
Z-Codes
Z-Codes only on income transactions. Especially if Zero rated sales are used.
Sales Tax Payable
If possible merge any transactions and delete this account
Inland Revenue Supplier
Assign all GST payments & refunds to the one name
Tax reports
Print ALL GST reports at the same date and keep in Excel to check after upgrade.
Please always refer to your GST upgrade notes. These are also in every upgrade,
subscription and media kit box printed on pink paper!
Default Tax Code
• Ensure a Default Tax Code has been allocated
• This should be set to ‘S’ (Edit  Preferences  Tax  Company
Preferences)
Tax Lines
• Ensure all Tax Codes have the correct Tax Type
• They should appear as below. If these are incorrect they must be
changed. (Lists  Tax Codes List)
• S
Goods & Services Tax
• E
GST Free
• N
GST Free
• Z
GST Free
• I
GST Free
Z Codes
• Ensure there are no ‘Z’Codes assigned to any expense transactions
• ‘Z’ Codes should only be used on zero rated sales.
• ‘E’ Codes should be used on exempt expenses.
Sales Tax Payable
• Earlier versions of QuickBooks (eg version 6 ) had a sales tax code.
• Make sure that ALL tax codes are assigned to the tax return line
Goods & Services Tax or GST Free (as above) NOT Sales Tax.
Inland Revenue Supplier
•
Ensure that there is only one ‘Inland Revenue Office’ name in the supplier
list.
•
During the upgrade process, all GST portions of historical transactions get
assigned to a new supplier in the 08/09 version called ‘Inland Revenue
Department’. This is then also enabled as a ‘Tax Agent’ in 08/09 which is
further linked to the Tax Payable account used for your GST. If you have
set up other suppliers names and used the wording Inland Revenue more
than one name in your supplier list in an earlier version (i.e. Inland Revenue
and Inland Revenue Dept) for your GST refunds and payments, it can
cause problems in the upgrade.
•
We suggest you rename these suppliers. Eg IRD PAYE, IRD Terminal Tax
etc.
Upgrading GST
Checks & Changes after upgrade to 08/09
Default Tax Code
Tax Items and Codes
Sales Tax Payable
Inland Revenue Supplier
.
Tax Reports
Please always refer to your GST upgrade notes. These are also in every upgrade,
subscription and media kit box printed on pink paper!
Default Tax Code
• Re-Allocate the Default Tax Code
• This should be set to ‘S’ (Edit  Preferences  Tax  Company
Preferences)
Tax Items
Tax Codes
Sales Tax Payable
• If this account exists on the Balance Sheet AFTER upgrade then…
• A)
Delete it
• B) If you can’t delete it because there are transactions assigned to
it, Journal out the old balance and then make the account innactive.
• C) You may still need to filter the 101 report so that it points to ‘Tax
Payable and not ‘Sales Tax Payable’
Inland Revenue Supplier
• Your supplier centre should just have one Inland Revenue
Department supplier name. The balance with this name should
reflect the balance outstanding in the IRD department for your GST
at the current date. (provided you reconcile your GST)
Tax Reports
• Compare the same reports you printed (or exported to Excel) prior to
the upgrade with the reports being produced by QuickBooks after
the upgrade. Ensure you are using the same date range as before.
•
•
•
•
GST 101
GST Summary Report
GST Detail Report
Tax Code Exception Report
Note: If any of these reports DO NOT balance, do not start working with
the file until they do.
Overview of GST Issues
•
If the GST upgrade notes have not been followed there is a good
chance that one of more of the following issues will be present in
the upgraded 0809 file.
•
•
1)
2)
•
•
•
3)
4)
5)
The balance on Inland Revenue Supplier is not correct
The GST detail and GST Summary report balance but the GST
101 report is different.
Customs ‘I’ transactions do not show on the 101 report.
‘Z’ expense transactions are showing on the 101 report.
The GST detail and GST summary report are OK but there is no 101
report
Lets now go and look at how
we can fix up these issues…
•
No amounts on the 101 report. (Ths could be because the
report is pointing to Sales tax payable and not Tax Payable
account)
Make sure the file is in SP3. Filter the report to tell it to report to the Tax
Payable account (and not Sales Tax Payable if it is on the COA)
•
If this does not fix the issue, contact Tech Support.
More than one Inland Revenue Supplier and the
balance showing in Supplier list is not the correct
balance outstanding.
•
Can the transactions in the Inland Revenue supplier that is not the
‘Tax Agent’ be changed to the supplier that is (ie there are not
1000’s)? If they can, suggest they take all transactions out of this
name and delete it. Normally these transactions will be for GST
payments and refunds and any other IRD payments (ie Provisional
Tax, Terminal Tax, PAYE)
If they can’t or the client doesn’t want to change them, just tell not to
use the balance on the supplier list as the balance O/S. They will
need to use the balance on the Balance Sheet or the Tax account
register
Tax codes and lines not assigned correctly in a new
08/09 file
•
Import the taxitemsnz.iif file
E & N tax codes coming through on the 101 report.
•
Ie: the GST amount x 9 does not equal the Total expenses
amount.
•
Upgrade to SP3.
Z tax codes coming through on the 101 report.
•
Ie: the GST amount x 9 does not equal the Total expenses amount.
•
Upgrade to SP3. If expenses are still incorrect you will have
expenses assigned to a Z code instead of E code, you will need to
change these.
GST and negative lines on bills
•
There is no fix to this yet
•
Australia are looking into this.
Negative lines used on Invoices GST reporting is incorrect.
This is something that development is working on at the moment.
• Fix
• ALL historical transactions would have to be changed, if historical
GST reports in QB’s are to be correct.
• A fix going forward is:
• 1)Set up a ‘deposit in advance item’ as an ‘other type’
• 2)Use a discount item to show a reduction on an invoice rather than
a service or stock item with minus amount. Ie for the amount
previously taken as a deposit.
Use for the initial deposit
Use to show the deposit previously paid on the
final invoice
Questions to ask customers with GST issues in 08/09
file.
• What Service pack are they on? (check CTRL 1) Should be on SP3
• Did they follow the GST upgrade notes?
• What version did they upgrade 08/09 from (check CTRL 1) If the
original file was 7.5 the tax lines would be different and may not
have been changed when at the 0708 stage before upgrade.