Secured Creditor payment with GST

For normal business related claims from Australian entities, the GST portion would usually form part of the Creditor Pre-Appointment claim so the GST on pre-appointment creditor claims is not usually included in the post-appointment BAS. If however there may be circumstances where a dividend needs to include a tax code and reported on the BAS. In these cases follow the suggested steps below.

Pay the pre-appointment secured creditor the gross amount as normal, and then enter a journal to move the GST component on the pre-appointment claim into a post-appointment income/revenue account. 

Preparing a dividend to a secured creditor as normal, it would result in a payment similar to below that only contains a Gross amount. 

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Once the payment has been prepared you can create a Revenue account similar to below for the GST refund.

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Then you can enter the journal similar to this. You can flag this journal to report on the R&P and review the BAS and R&P reports to ensure they are okay (compare the R&P report output when the journal is unflagged.)

The flagged journal will report on the BAS as shown below.

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It will report on the Detailed R&P (the 5602) as a Nil receipt as shown below

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It will report on the Abstract R&P like this

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When the GST refund is received from ATO you would enter a receipt into GST Paid/Received account like this

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Which would report on the R&P detail like this

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And it will report on the R&P Abstract like this

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