Posting journals with a tax code
This feature is available only from version 5.4.42
As part of moving to the cloud, we're making changes to MYOB AE/AO to easily integrate with your online ledger.
In AE/AO version 5.4.42, you'll see the following changes:
- Define the tax collected and paid accounts for all tax codes in the online ledger (instead of AE/AO).
- When you add a journal with a tax code, the tax amounts will be calculated automatically based on the tax code. Tax amount can be allocated automatically to collected or paid accounts.
- View all the tax details such as tax amount, tax code when viewing a journal transaction.
- View the tax details in the GST reports that are run in the online ledger.
We've removed the Define GST accounts option that is used for defining the specific tax accounts in AE/AO and replaced it with Define Tax code.
When you select Define Tax code, the Tax codes window in the online ledger will open for you to set up.
If you're prompted with a login window, use your AE/AO credentials to view the Tax codes in your online ledger.
After you've set up the tax codes in the online ledger, you can add journals in AE/AO.
Based on the tax code and tax type selected, the tax amount will be automatically calculated and allocated to the tax collected or paid accounts.
When adding a journal:
- Select Apply Tax to post a journal with tax amounts.
- Tax type: Select Collected or Paid for the tax accounts. This is a mandatory field to be able to add the journal.
- If you've selected Collected, the tax amount will be allocated to the tax code's pre-defined collected account.
- If you've selected Paid, the tax amount will be allocated to the tax code's pre-defined paid account.
- Tax code & Tax Rate: After you select an account, the tax code and tax rate configured for that account will appear.
If you need to add journals with tax code LCT, LCG, IMP or GW, you'll need to do them in the online ledger directly.
- Tax Amount: This is calculated automatically based on the tax rate.
When you view a journal using the View All or View for Account options, the tax code, tax type, tax rate, and tax amount will display in the original journal transaction. This is useful for tracking purposes.
When viewing a transaction for a posted journal, the tax code and tax amount will display if it is available.
- If you use AccoutRight Live, you'll not be able to view Tax code and Tax Amount in the View Transactions window. Go to the AccountRight Live ledger to view the tax details.
- If a collected or paid account doesn't have a tax code or has an inactive collected/paid account defined, the tax amount will be allocated to its original journal transaction on the trial balance. However, when viewing the transaction the closing balance total will not include the tax amounts and the closing balance may not be equal to the final value in the trial balance.
The GST report in the online ledger will be automatically generated when creating a journal.
The report will include tax amounts based on the following:
- For the Balance Sheet accounts, the GST amounts on the reports will show based on the Collected or Paid selections made while posting a journal.
- For the Profit or Loss accounts, depending on the account code the GST amount will show under Sales or Purchase based on if the account is an income account or an expense account.
