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Automatically calculating GST in a budget

You can automatically track the expected GST liability for your business based on the budget values you enter. This can help you plan your tax compliance and avoid nasty surprises from the ATO or Inland Revenue.

Depending on your reporting frequency, you'll get an estimate of GST payable or refundable in the GST Movement section of the budget.

Projected GST payments in a budget

Depending on when you created your MYOB business, the GST Movement section will display either separate GST Paid and GST Collected accounts or a combined GST Balance account.




How to use it

To automatically calculate GST in your budget, you need to select an option to turn it on, check your GST report settings and choose a GST clearing account.

When you enter your budget amounts, your GST liability is automatically calculated.

To automatically calculate GST in your budget

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Start by creating a liability account that'll be used in your budgets to help with the auto GST calculations. This account works behind the scenes to show your expected GST liability in a cash movement budget. It'll be a unique account that isn't used for anything else.

  1. Go to the Accounting menu > Chart of accounts.

  2. Click Create account.

  3. For the Account type, choose Other liability.

  4. Enter an Account number that suits your accounts list.

  5. Enter an Account name, like GST Clearing Account or GST Budget Account (or similar).

  6. For the Tax/GST code, choose N-T.

  7. Click Save. Here's our example:

    Example GST Clearing Account

You can now turn on auto GST calculations in your cash movement budgets.

  1. Create your budget as you normally would. See Working with budgets if you need some guidance.

  2. Choose Cash movement as the budget Type.

  3. Select the Auto calculate option and:

    1. confirm that you understand that this will overwrite any values that have been entered in the GST Movement section

    2. choose the GST clearing account you created above

    3. choose or confirm the GST reporting frequency for your business.

      Example budget with type and GST option highlighted
      Example confirmation to turn on auto GST calculation

      Don't re-select Auto calculate, as this will overwrite the changes you've made.

  4. Click Save.

  5. Enter your budget amounts. If you need any tips, see Working with budgets. As you enter these amounts the GST Movement section automatically updates and the GST clearing account you chose at step 6 shows the amount of GST payable or refundable for your reporting periods.

    New Zealand only

    To enter GST on imports, you need to enter amounts for the 2-1240 GST Input Tax Adjustments account. 100% of these amounts will be automatically added to the GST Paid account (or, if you don't have a GST Paid account, the GST Balance account).

  6. Click Save to save the budget.


How to overwrite calculated GST

You can overwrite the calculated GST values in a budget – for example, to enter balance sheet account tax amounts.

To do this, you need to deselect the Auto calculate option. Your previous GST calculations are retained, but the GST Movement section becomes editable.

To overwrite calculated GST amounts in a budget

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  1. On the Budget Management page, click the budget's name to open it.

  2. Click Report options and deselect Auto calculate.

  3. Edit the values in the GST Movement section as required. 

    Don't re-select Auto calculate, as this will overwrite the changes you've made.

  4. Click Save changes.