Initial GST setup for cash basis

Initial GST setup by Readysell

Readysell will help you prepare your initial gst position as follows:

Run a report from your existing system showing the GST receivable and payable as at the conversion date on a cash basis

Run a general ledger report showing your general ledger GST receivable and payable as at the conversion date on a accrued basis

Create one gst item as at the conversion date for each of the following as at the conversion date:

• The cash basis GST payable
• The Cash basis GST Free for Payable
• The cash basis GST receivable
• The Cash basis GST Free for receivable

If the (general ledger accrued basis gst payable - general ledger gst receivable balance) is less than the cash basis gst report (cash basis gst payable - cash basis gst receivable balance) 

• Create a general journal to account for the difference, post to conversion difference account

If the (general ledger accrued basis gst payable - general ledger gst receivable balance) is greater than the cash basis gst report (cash basis gst payable - cash basis gst receivable balance) 

• • The general ledger accrued basis GST receivable - cash basis GST receivable
  • The general ledger accrued basis GST payable - cash basis GST payable
  • Extract a GST batch and include the GST items above in the batch. Then post the batch.

Handling the end of your first GST period on Readysell