How to: Calculate Goods and Services Tax on Prepayments
When a partial payment or prepayment is made, you must calculate Goods and Services Tax (GST) for that partial payment or prepayment based on the total invoice amount, instead of on a partial amount. If you account for GST on a non-cash basis, you must report and pay GST on payments during the period in which you receive partial payment or issue a tax invoice for payment.
To calculate GST on prepayments
In the Search box, enter General Ledger Setup, and then choose the related link.
On the Local Functionalities FastTab, select the Full GST on Prepayment check box to calculate GST for the total invoice amount when a prepayment invoice is posted.
Choose the OK button.
See Also
Tasks
How to: Set Up Business Activity Statements
How to: Export Business Activity Statements
How to: Print Goods and Services Tax Sales and Purchase Reports
Concepts
Business Activity Statements
Australia Local Functionality