Set up Tax

1.

Go to System and click on Administration. Highlight the relevant ledger, then click the Ledger Definition tab.

2.

Make the following selections:

1. Tick the Tax checkbox

2. Go to Tax Name and select the relevant tax scheme from the list of available options

3. Click Update to save changes made

1.

Go to System and click on Tax Schemes.

2.

Select the relevant scheme from the list of available options.

3.

Review rates for each of the tax codes listed. Tax codes or rates can be added or updated by clicking on the + symbol at the top of the relevant section as highlighted below.

Open

1.

Go to the chart of accounts (either via Accounts and click on Account Maintenance, or System and click on Administration).

2.

Create a sub-account for GST Paid if this does not already exist. Below is an example of how this might be configured.

Open

3.

Repeat this process to create a sub-account for GST Collected if this does not already exist.

4. 

Link the GST sub-accounts to the appropriate account in your chart of accounts. To do this go back to the Chart of Accounts, click on the relevant account, click on the Assign Sub-Accounts tab, select your GST sub-accounts from the available list and use the blue arrow to move them to the assigned list as per the example below.

5.

Go to System and click on Administration. Highlight the relevant ledger, then click on the Special Accounts tab.

6.

Ensure that the GST Paid sub-account is selected in the PUR GST paid on purchases field and that the GST Collected sub-account is selected in SAL GST collected on sales field as shown below.

7.

Click Save