Reconciling GST in MYOB (payments basis)

This is relevant for all of us who report GST on the Payments (cash) basis. MYOB AccountRight clocks up GST on the invoice basis – i.e. every time you enter a sale or purchase the GST content adds to the GST Collected or GST Paid account. To ensure you have claimed or paid the correct GST amount, do the following at the end of each GST period. You aim to prove that the total of all your GST accounts (GST Collected, GST Paid, Customs GST and GST Payments/Refunds) EQUALS your GST actually Paid (for the period). It should take you less than 10 minutes if you follow the instructions below.

1. Run the Balance Sheet as at 31/3/xx or end of GST period. Write down the Total GST (all GST accounts). In the example below it is $7,585.95

2. Print  the report under Sales called Receivables with GST.

3. Run the report as at 31/3/xx or end of GST period. Write down the GST Figure.

4. Run the report under Purchases called Payables with GST at 31/3/xx or end of GST period. Note the GST amount.

5. Run the GST form as pictured below.

6. The calculation is as follows:

And if it doesn’t balance? You could go hide in a bush but better still, have a conversation with your accountant. It is highly likely they have done the rec for you at end of year. It should balance then. You can then run the reconciliation at the end of each GST period from then on to see where things go wrong. The most likely reason not to balance is you have made entries to prior (closed periods) AFTER you have filed your GST return.

GST pic

Lock your Periods

It is essential to lock your periods once a GST period is completed. The reason for this is so you don’t continue to enter transactions into the period which is essentially ‘finished’.

  1. From the main menu, select [Setup] Preferences then Security tab
  2. Tick the option to Lock Periods: Disallow entries up to and including…
  3. From the drop-down list select the ending month of your just-completed GST period

Any adjustments or missed entries must now be made in the current (new) GST period.

Lynley Averis

Lynley is an MYOB Certified Consultant & has been involved in training in New Zealand since 1985. She's written various accounting & MYOB workbooks including co-authoring “Bookkeeping for Dummies”. She has consulted on all versions of MYOB Accounting, Retail and Payroll over the past 18 years and has previously worked for MYOB. She currently consults to NZ businesses on all aspects of business systems - her mission for clients is for them to spend as little time as possible doing accounting!