Scenario:


We started to use Sage 50 for accounting purposes effective 1 May 2015. Our company financial year end is 30 April 2015. For the month of April, all GST is tracked manually.


On 1 May 2015, outstanding balances from creditors is keyed into Sage 50 as brought forward balance. For this example:

Creditor brought forward balance = 1,480


Upon checking for payment today, we realised that we omit the GST element in the creditors balance. Therefore, we need to add GST 6% value = 88.80 into the creditors account via AJP tax code adjustment.


We tried to adjust via General Journal or Creditors' credit note but system do not seem to allow such adjustment. I am expecting to post this journal entry:

DR: Input Tax Credit 88.80

CR: Creditor 88.80


Suggested Solutions:


1. Record in General Journal as follows:


We credit to GST Suspense since it do not allow any supplier selection.

2. Fill the GST Details in GST Input Tax line as follows:


You can put GST Adjustment as the company name and for other details. Please key in the taxable amount.

Then post the transaction.

3. Go to Purchase Journal and record as follow:


4. This is the GST Detail in GST-03:


Please try this in test database.