Calculate Goods and Services Tax on Prepayments in the Australian Version
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
- Choose the icon, 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.