Run the GST Reconciliation report for a specified period
Run the GST Reconciliation report for one or more specified GST periods. You'll need to export the report to Microsoft Excel and adjust some figures before you can balance it.
Before you start
- Run and publish the BAS for all periods up to and including the period of the GST Reconciliation report you want to run.
Run the Balance Sheet report to show the position at the start of the GST period you want to reconcile. Run your report on the same basis you report GST. For example, if you want to run your GST Reconciliation report for the period 1 January to 30 June 2016 and you report GST on the cash basis, run your Balance Sheet report on the cash basis as at 31 December 2015.
You'll need the GST account balance from your Balance Sheet report when you make your adjustments.
Run and export your GST Reconciliation report
- In the Reports menu, select All Reports.
- Under the Tax heading, click GST Reconciliation.
- Change the From and To dates, then click Update.
- Click Export, then select Excel.
Check your GST Owing Opening Balance
Compare the GST Owing Opening Balance figure on your exported GST Reconciliation report with the GST account balance on the balance sheet you ran.
If the amounts are:
- The same - Go to the next section.
Different - Overwrite the GST Owing Opening Balance figure on your spreadsheet with the GST account figure from your balance sheet. Enter a GST liability as a positive number and an asset as a negative number.
Update Unfiled GST in the GST Account Summary
Edit the Unfiled GST amount in the GST Account Summary section of your spreadsheet to account for opening unfiled GST balances. Do this by subtracting the difference between the Opening Balances in the Unfiled column of the GST Collected and GST Paid sections.
Review further items if your cash basis reconciliation doesn't balance
If you report GST on a cash basis and your reconciliation still doesn't balance, review these further items:
- Timing difference from payment applied to future-dated invoice or bill
- Permanent difference from manual journal
Timing difference from payment applied to future-dated invoice or bill
A timing difference occurs if you make or receive a payment in the current GST period for an invoice or bill dated in a future GST period.
For example, you receive a deposit in June but when reconciling the bank it is applied to an invoice dated July. The GST for the invoice will be included in the June BAS, however it won't be included in the accruals GST Account Balance on the GST Reconciliation report until July. The timing difference will resolve itself when the GST Reconciliation report includes July.
Permanent difference from manual journal
A permanent difference can occur if a manual journal is posted that affects GST but the Show journal on cash basis reports option is not selected.
To locate the cause of the difference:
- Run the GST Reconciliation Report for prior periods until you find the first GST period the difference occurs in.
- Run an Account Transaction report for the GST account, for the GST period the difference first occurred in. Export the report to Microsoft Excel.
- Search the report for manual journals.
- In Xero, open the manual journals and see if any were posted on accruals basis only. These manual journals will be causing the permanent difference.