Accounting for Business Activity Statements

The Business Activity Statement (BAS) payment is normally made in one lump sum via BPay to the Australian Tax Office.

We use the transaction description of "GST PAYG" so it is easy to pick out of the transactions list.

So look over the reconciliation list and find the

GST PAYG

transaction

This single payment covers multiple PAYG instalments and a single GST payment.

We need to apply the payment for each of those recorded PAYG instalments in our accounting system and create a payment for the GST. 

In the bank reconciliation screen select "Match" then "Match & Find" against the lump sump payment.

PAYG entries are kept against the PAYG Payable account.

Create a new spend money line that matches the amounts you have in 4 of your business activity statement.

go.xero.com/bas?CID=!UzlKt

The account should be the PAYG Payable account.

Open Xero in a new browser tab:

Go to Reports -> All reports-> Published -> Activity Statement (most recent) -> 4. PAYG withheld.

Check that 4. PAYG withheld total matches with the amount selected on the reconciliation screen.

Back on the reconciliation screen.

Create a new transaction line.
account GST

The GST figure should match 1A subtract 1B

The remainder is the instalment as decided by the ATO. It is normally advised as part of the BAS process, so unless you wrote it down somewhere it will be the difference noted here.

account Income Tax Payable

This is 5A on your BAS, however this field is manually entered. if you didn't already fill this in yourself, you may want to do so now.