http://www.d2k.co.nz/2010/xero-and-gst-rate-increase/ Data Analytics and Applications Mon, 16 Aug 2010 01:22:39 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.d2k.co.nz/2010/xero-and-gst-rate-increase/comment-page-1/#comment-4 admin Wed, 30 Jun 2010 02:32:05 +0000 http://www.d2k.co.nz/2010/xero-and-gst-rate-increase/#comment-4 I think what they are saying is that whilst the system will capture the correct information (as you say the actual GST is calculated based on the GST settings of the invoice to which the cash receipt is ultimately allocated), the std GST Return format currently just takes Total Sales for the period and asks you to divide by 9 to get the GST payable. There is going to need to be some sort of rec to deal with those cash receipts allocated to 12.5% invoices and those allocated to 15% invoices - the simple divide by 9 won't work any more. I don't think they are saying it is complicated, just that they have it in hand. (I spoke to a rep from another software vendor today and asked for their NZ GST strategy - document will be out soon - and I am sure all vendors will get it sorted in time for the changeover). Appreciate your feedback. I think what they are saying is that whilst the system will capture the correct information (as you say the actual GST is calculated based on the GST settings of the invoice to which the cash receipt is ultimately allocated), the std GST Return format currently just takes Total Sales for the period and asks you to divide by 9 to get the GST payable. There is going to need to be some sort of rec to deal with those cash receipts allocated to 12.5% invoices and those allocated to 15% invoices – the simple divide by 9 won’t work any more. I don’t think they are saying it is complicated, just that they have it in hand. (I spoke to a rep from another software vendor today and asked for their NZ GST strategy – document will be out soon – and I am sure all vendors will get it sorted in time for the changeover). Appreciate your feedback.

]]> http://www.d2k.co.nz/2010/xero-and-gst-rate-increase/comment-page-1/#comment-3 Colleen King Wed, 30 Jun 2010 02:09:28 +0000 http://www.d2k.co.nz/2010/xero-and-gst-rate-increase/#comment-3 I like Xero as a product but I don't like to see information that could be misleading posted about other products. All the accounting software packages I've used over the years, link the payment to the GST rate entered on invoice on the day. Businesses who use accrual invoicing with cash basis GST systems will not pay 15% on a 12.5% transaction if everything is entered correctly at the invoicing stage. Accepted that businesses entering transactions straight from a bank statement will have to change GST codes for receipts relating to prior months but those businesses usually don't have huge volumes of transactions relating to prior months. We did survive 10% to 12.5%. I like Xero as a product but I don’t like to see information that could be misleading posted about other products. All the accounting software packages I’ve used over the years, link the payment to the GST rate entered on invoice on the day. Businesses who use accrual invoicing with cash basis GST systems will not pay 15% on a 12.5% transaction if everything is entered correctly at the invoicing stage. Accepted that businesses entering transactions straight from a bank statement will have to change GST codes for receipts relating to prior months but those businesses usually don’t have huge volumes of transactions relating to prior months. We did survive 10% to 12.5%.

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