Modular Business Management & Payroll Software Solutions for SMEs

PAYG Payments and GST reporting

Journals can be posted from Visipay directly into Vision, usually after the last pay of the month.  The Vision GST reporting on the PAYG looks at the total of the journals into the PAYG Clearing account for the given month.  A problem might arise if, for example, the January PAYG payment is coded to the cashbook in mid February, around the date of the actual payment to the ATO.  This results in the February PAYG calculation including both the PAYG deductions from payroll, but also the January PAYG payment, thus under-reporting the liability.

There are two solutions to this problem.

  1. Date the Cashbook entry as the end of the month the payment relates to, rather than the date it is actually paid.  In the above example, January is already reported and closed, so dating the payment in January will have no further effect.
  2. Use a second General Ledger Clearing Account to record the payments to the ATO, and perform a journal periodically to clear one against the other once reporting is complete for that period.