NOTE: This post only applies to users of PlanGuru 2012 and earlier. With PlanGuru 2013 we've rolled out an automated solution to VAT/GST processing.
We get many customers asking us how to model Value Added Tax in our product. NOTE: We plan to roll out a more automated VAT-GST sollution for PlanGuru 2013. If you have yet to read our About Modeling Sample post, get started by doing so. Our about post will introduce you to the general format of our modeling samples and give you a better understanding of how to follow and use the information provided here.
The company accrues a VAT/GST receivable for the purchase and A VAT/GST payable is accrued on Sales. The difference between the two amounts must be paid to the tax authority. Payments are made every two months to tax authorities. Thus the following amounts must be calculated.
Save and open the analysis in the attached company file to see one way VAT/GST can be modeled in PlanGuru. Review the file starting with the Non-financial data tab, this is where the "drivers" are built into the model, such as VAT/GST receivable on purchases & VAT/GST payable on sales. Next review the setup of the VAT Control Account located in the current liabilities section of the balance sheet.