Amending GST amount on Purchase Invoice
There are two methods of computing the GST on Tax Invoice when the invoice contains more than one item with the standard rated supplies. The line item method, which commonly used in accounting software; this method computes the GST on each line item and then sums up the GST amount. The second is a subtotal method, which calculates GST based on the total payable.
Assuming you sold 9 pieces of product A at $13.98 each and 7 pieces of product B at $17.38 each.
Method one (the line item method):
9 x Product A @$13.98 = $125.82 x 7% GST = $8.80
7 x Product B @$17.38 = $121.66 x 7% GST = $8.51
Total GST = $17.31
Method two (Subtotal method):
9 x Product A @$13.98 = $125.82
7 x Product B @$17.38 = $121.66
7% GST = $247.48 x 7% = $17.32
Both methods of computing the total GST are acceptable so long as you apply the chosen method consistently (Please refer to the IRAS e-Tax Guide GST: General Guide for Businesses)
Due to a different method used or rounding between two systems, the GST amount on supplier invoice may differ from your entry. You need to set to show tax column from the MoneyWorks Document Preferences to allow amending the GST amount on Purchase Invoice transaction. A warning message may prompt when printing the GST report, and the report highlights those transactions in question.
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