BAS doesnt match with Profit/Loss Report

Posted by Andreas Boehmer on July 12, 2006, 2:34 am

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Hi,

I am using an Australian version of Quickbooks Lite.

I noticed today that the Total Sales on my BAS statements (created by
Quickbooks Simplified BAS statement function) do not match with the Total
Income created by the Profit & Loss Report. I can't quite figure out why the
numbers don't match.

Even though they don't match, the GST Due calculated by the Simplified BAS
functionality matches with the GST Due on the Tax Liability Report.

In the Simplified BAS functionality I have selected following tax codes

G1 Total Sales: EXP, FRE, GST
G2 Exports: EXP
G3 Other GST-free supplies: FRE
G10 Capital acquisitions: CAF, CAG
G11 Other acquisitions: NCF, NCG

Any idea what I might be overlooking or if I am doing something wrong with
the software settings?

Thanks heaps!

Posted by Bob Williams on July 12, 2006, 8:55 am

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On Wed, 12 Jul 2006 16:34:34 +1000, "Andreas Boehmer"

>Hi,

>I am using an Australian version of Quickbooks Lite.

>I noticed today that the Total Sales on my BAS statements (created by

>Quickbooks Simplified BAS statement function) do not match with the Total

>Income created by the Profit & Loss Report. I can't quite figure out why the

>numbers don't match.

>Even though they don't match, the GST Due calculated by the Simplified BAS

>functionality matches with the GST Due on the Tax Liability Report.

>In the Simplified BAS functionality I have selected following tax codes

>G1 Total Sales: EXP, FRE, GST

>G2 Exports: EXP

>G3 Other GST-free supplies: FRE

>G10 Capital acquisitions: CAF, CAG

>G11 Other acquisitions: NCF, NCG

>Any idea what I might be overlooking or if I am doing something wrong with

>the software settings?

>Thanks heaps!

Andreas

The concept of total supplies (GST) and accounting income are not
necessarily connected. You may have sold an asset and used the GST
codes, or bought an asset using the CAF and CAG codes.

Secondly, you may have missed the fact that the BAS populates with an
inclusive figure (unless you toggle the radio button regarding what is
included at G1. That will mean that your total income and G1 will
never be the same, because accounting income does not include the GST
collected on behalf of the government - it is not yours.

Thirdly, you may have misapplied the codes in your original documents
(e.g. NCG used on sales documents, GST used in purchase documents). A
clue to this is to run the Tax Summary report - ensure that all
columns have 0.00 on the correct line (GST, FRE, EXP, INP are Outputs,
NCG, NCF, NCI, CAF, CAG, CAI are inputs - but inputs come from
purchase documents and sales from sales documents). Look out for
incompatible codes being used together here.

Fourthly, you may have used General Journal entries and not selected
the correct radio button to choose input or output.

It is not a bad idea to find a Quicken Accredited Consultant to help
you with this. Try www.quicken.com.au and go to Training and Find a
Trainer. Search for your region and select someone you think might be
able to help. You will find a small investment now will help you in
the future.

Bob Williams

Posted by Andreas Boehmer on July 12, 2006, 9:25 pm

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> On Wed, 12 Jul 2006 16:34:34 +1000, "Andreas Boehmer"

>>Hi,

>>I am using an Australian version of Quickbooks Lite.

>>I noticed today that the Total Sales on my BAS statements (created by

>>Quickbooks Simplified BAS statement function) do not match with the Total

>>Income created by the Profit & Loss Report. I can't quite figure out why

>>the

>>numbers don't match.

>>Even though they don't match, the GST Due calculated by the Simplified BAS

>>functionality matches with the GST Due on the Tax Liability Report.

>>Any idea what I might be overlooking or if I am doing something wrong with

>>the software settings?

> The concept of total supplies (GST) and accounting income are not

> necessarily connected. You may have sold an asset and used the GST

> codes, or bought an asset using the CAF and CAG codes.

Hi Bob, thanks for your reply.

I think I found what caused the problem.

I have got an account of the type "Fixed Asset" into which I enter all my
assets such as computer equipment above 300 AU$. When I enter them, I
normally use the CAG code. If I understand you correctly, these assets are
not being included in the accounting expenses as they are an asset, not an
expense? This would seem logical to me.

Now, while looking at that, I noticed a major mistake I made for some of
those entries. Since July last year I purchased 4 new fixed assets and to
all of them I assigned the GST code, instead of the CAG code. Now I could
just go and change the codes, but I presume that it is not that easy, seeing
I have already submitted my BAS statements for the last year.

Have you got any idea how I could fix that problem? Or is it worth getting
in a Quicken Trainer for that? I actually already had a trainer in once who
set up the system for me, but of course that doesn't help if I simply forget
to assign the correct code. :)

Thanks for all your help.

Posted by Bob Williams on July 13, 2006, 7:36 am

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On Thu, 13 Jul 2006 11:25:03 +1000, "Andreas Boehmer"

>> On Wed, 12 Jul 2006 16:34:34 +1000, "Andreas Boehmer"

>>>Hi,

>>>

>>>I am using an Australian version of Quickbooks Lite.

>>>

>>>I noticed today that the Total Sales on my BAS statements (created by

>>>Quickbooks Simplified BAS statement function) do not match with the Total

>>>Income created by the Profit & Loss Report. I can't quite figure out why

>>>the

>>>numbers don't match.

>>>

>>>Even though they don't match, the GST Due calculated by the Simplified BAS

>>>functionality matches with the GST Due on the Tax Liability Report.

>>>

>>>Any idea what I might be overlooking or if I am doing something wrong with

>>>the software settings?

>> The concept of total supplies (GST) and accounting income are not

>> necessarily connected. You may have sold an asset and used the GST

>> codes, or bought an asset using the CAF and CAG codes.

>Hi Bob, thanks for your reply.

>I think I found what caused the problem.

>I have got an account of the type "Fixed Asset" into which I enter all my

>assets such as computer equipment above 300 AU$. When I enter them, I

>normally use the CAG code. If I understand you correctly, these assets are

>not being included in the accounting expenses as they are an asset, not an

>expense? This would seem logical to me.

>Now, while looking at that, I noticed a major mistake I made for some of

>those entries. Since July last year I purchased 4 new fixed assets and to

>all of them I assigned the GST code, instead of the CAG code. Now I could

>just go and change the codes, but I presume that it is not that easy, seeing

>I have already submitted my BAS statements for the last year.

>Have you got any idea how I could fix that problem? Or is it worth getting

>in a Quicken Trainer for that? I actually already had a trainer in once who

>set up the system for me, but of course that doesn't help if I simply forget

>to assign the correct code. :)

>Thanks for all your help.

Andreas

From experience, it is best if you get someone to do this for you. It
needs a couple of journal entries to adjust the next BAS provided it
does not involve more than $5,000 of GST in total in the BAS.
Otherwise you should change the information in QB and resubmit the BAS
from the previous affected periods.

Again, get someone who knows to help you with this. I might be able to
recommend someone if you would like, I know them well. But I need to
know your location. Email me off list at bobatosmondridgedotcomdotau.

Bob