Create an Other Asset – Prepaid Legal Fees and drew against that account. No Default GST Code so it does not report on the BAS.
Coding the prepayment with tax code NCF will report the payment at G14 however the credits allocated to this account will report on the BAS as GST free Sales at G3.
F5602 reports as payment with ASIC code Other Cost of Realisation
Next period $8,800 is invoiced against the $10,000 prepaid.
Journal $8,800.00 as per below example and Flag the journal to appear on Statutory R&P if you want it to report on the Form 5602/5603.
Journal will appear on the BAS as below:
And on Payments list on F5602
And on Payment Summary on F5602