Similar to the general posting setup described in Set Up Posting Groups, you must define one or more GST business posting groups and assign one of them to each general ledger, customer, and vendor account. You must also set up one or more GST product posting groups and assign one of them to each item and resource account. After you have set up the groups, you must set up the necessary combinations of the groups in the GST posting setup. For each combination, specify the GST percentage, and general ledger accounts for GST, purchase GST, and, if needed, reverse charge GST.
If you assign default GST posting groups to the general posting groups, the GST posting groups will automatically be assigned to general ledger, customer, vendor, item and resource accounts when you assign the general posting groups.
Import GST
The import GST feature is used when you need to post a document where the entire amount must be treated as GST. This is necessary if you receive a GST invoice from the tax authorities for imported goods. To handle import GST, you must set up at least one GST product posting group for import GST, and include it in at least one combination in the GST posting setup.
Reverse Charge GST
Usually, the seller of an item calculates and withholds GST. Companies in the EU, however, must use reversed GST calculation when trading with other companies that are registered as GST-liable in another EU country/region. This means that instead of GST being calculated by the seller, it must be calculated by the purchaser.
You must set up at least one GST business posting group for reverse charge GST, and include it in at least one combination in the GST posting setup. The reverse charge GST feature can be used in connection with the standard GST calculation principle, as well as with the unrealised GST calculation principle.
Unrealised GST
By default, GST is calculated and posted when an invoice is posted. However, you can choose to have GST amounts first calculated and posted to a temporary general ledger account when the invoice is posted, and then posted to the correct general ledger account and included in GST statements when the actual payment of the invoice is posted.
Adjust Payment Discounts for GST
If a payment discount has been calculated on the basis of an invoice amount including GST, you can have the payment discount part of the GST amount be debited to the GST account when the payment discount is granted.
The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.
| To | See |
|---|---|
Learn about setting up GST, including setting up GST posting groups and GST posting setup combinations, and using reverse charge GST. | |
Set up posting groups that you can use to categorise customers and vendors for GST posting purposes. | |
Set up posting groups that you can use to categorise items and resources for GST posting purposes. | |
Set up the GST percentage and default posting accounts for each combination of a GST product group and a GST business group. | How to: Set Up Combinations of GST Business Posting Groups and GST Product Posting Groups |
Link GST business posting groups to general business posting groups, so they are assigned automatically. | |
Link GST product posting groups to general product posting groups, so they are assigned automatically. | |
Assign GST posting groups to general ledger accounts manually. | How to: Assign GST Posting Groups to General Ledger Accounts |
Assign GST business posting groups to customer and vendor accounts manually. | How to: Assign GST Business Posting Groups to Customer Accounts and Vendor Accounts |
Assign GST product posting groups to item and resource accounts manually. | How to: Assign GST Product Posting Groups to Item Accounts and Resource Accounts |
Use the import GST feature to post a document where the entire amount must be treated as GST, for example, if you receive a GST invoice from the tax authorities for imported goods. | |
Set up at least one GST business posting group for reverse charge GST in order to have GST on purchases from the EU treated appropriately. | How to: Enter Basic Information on Reverse Charge GST for Purchases |
Have GST amounts calculated and posted to a temporary general ledger account when an invoice is posted, and then posted to the correct general ledger account and included in GST statements when the actual payment of the invoice is posted. | |
Revert the payment discount part of the GST amount when the payment discount is granted. | |
Set up periodic GST reports that must be submitted to the tax authorities. |