Set Up Unrealised GST for Cash-Based Accounting

If you are using cash-based accounting methods, you can set up Business Central to handle unrealised GST.

To use general ledger accounts for unrealised GST

You can choose to 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. Before you can do this, you must complete the GST posting setup.

To use accounts for unrealised GST, follow these steps:

1. Choose the icon, and enter General Ledger Setup.
2. On the General Ledger Setup page, select the Unrealised GST check box.
3. Choose the Search for Page or Report icon , and enter GST Posting Setup.
4. On the GST Posting Setup page, choose the GST posting group, and then choose the Edit action.
5. In the Unrealized GST Type field, choose an option to specify how to allocate payments to the invoice amount (excluding GST) and the GST amount itself, and how to transfer GST amounts from the unrealized GST account to the realized account. The following table describes the options.

Option	Description
Blank	Choose this option if you don't want to use the unrealised GST feature.
Percentage	Payments covers both GST and the invoice amount in proportion to the payment's percentage of the remaining invoice amount. The paid GST amount is transferred from the unrealised GST account to the realised GST account.
First	Payments cover GST first and then invoice amounts. In this case, the amount transferred from the unrealised GST account to the GST account will equal the amount of the payment until the total GST has been paid.
Last	Payments cover the invoice amount first and then GST. In this case, no amount will be transferred from the unrealised GST account to the GST account until the total amount of the invoice, excluding GST, has been paid.
First (Fully Paid)	Payments will cover GST first (like the First option), but no amount will be transferred to the GST account until the full amount of GST has been paid.
Last (Fully Paid)	Payments will cover invoice amount first (like the Last option), but no amount will be transferred to the GST account until the full amount of GST has been paid.

6. In the Sales GST Unreal. Account field, choose the account for unrealized sales GST.

   Note

   The GST amount will be posted to this account, and stay there until the customer payment is posted. The amount is then transferred to the account for GST.

7. In the Purch. GST Unreal. Account field, enter the general ledger account for unrealised input tax credit.

Note

The GST amount will be posted to this account, and stay there until the customer payment is posted. The amount is then transferred to the account for input tax credit.

See Also

Set Up Calculations and Posting Methods for Goods and Services Tax

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