GST & GL REVENUE MISMATCH DIAGNOSTIC

Created by Cindy Labarro, Modified on Sat, 7 Sep at 10:24 AM by Cindy Labarro

A2000 ONLINE SUPPORT DEPARTMENT

KNOWLEDGE BASE

GST & GL REVENUE MISMATCH DIAGNOSTIC

Description: The diagnostic tool GST & GL Revenue Mismatch is very useful in preparing the GST Form 5.

__________________________________________________________________________________________

1. WHAT IS PURPOSE OF THIS DIAGNOSTIC?

It serves as support for “valid differences" between Box 4 and Box 13 in your GST Form 5. It is meant to help users identify and correct errors that occurred during a transaction entry. Some examples where these differences will show up are:

A. A Sales A/c (Revenue Item) did not have GST selected and caused Form 5 not to tally.

B. GST applied on a non-revenue item like Discounts, Advance Revenue, Asset Disposal etc.

C. Out-of-Scope transactions that are not captured in GST report but are recognized as Revenue items.

Example 1:

A product called DISCOUNT is mapped to Sales Discount A/c but this account is not flagged as a Revenue Item in the Chart of Account

INVOICE #1234 GL REVENUE A/C (marked in COA)

1. Sales Product #1 1 EA $100.00 Cr Sales 1 = $100

2. Sales Product #2 1 EA $200.00 Cr Sales 2 = $200

3. Discount 1 EA - $30.00

TOTAL $270.00

GST (8%) $21.60

Appearing as Box 4 is $ 270.00 Appearing in Box 13 as $ 300.00

Example 2:

Products are bought from China and sold to India without landing in Singapore. This is still revenue, but billed as Out-of-Scope GST, which is not necessary to display in the GST Form 5 report

INVOICE #1235 GL REVENUE A/C (marked in COA)

1. Sales Product #1 1 EA $100.00 Cr Sales 1 = $100

TOTAL $100.00

GST (Out of Scope 0%) $ 0.00

Appearing as Box 4 is $ 0.00 Appearing in Box 13 as $ 100

2. HOW TO USE THIS TOOL

Go to System – Diagnostics - to generate diagnostics for GST period you are reporting.

If you notice Box 4 (Total Supplies) and Box 13 (Total Revenue) do not tally, (as in above example graphic) it is clearly due to one of the reasons in Para (1). Some examples of errors (non-exhaustive list) that may/ or may not need to be corrected are:

Transactions where GST is applicable but the GST Box is not ticked. If this is the case, this transaction will be included in Box 13 but not in Box 4.

A Chart of Account like Advanced Income A/c or Fixed Asset Disposal A/c will not be flagged as Revenue item, but Standard Rate GST is charged. This cause Box 4 to pick up the tax amount, for this disposal is not shown in Box 13.
User passing journal entries into the GL Revenue account but did not book in any corresponding GST entries.

NOTE: Not all items listed here are errors or need to be cleared. These will depend on the nature of the transaction (if in doubt please check with your auditor or accountant). Some examples of differences that may be considered as valid are:

GST-applicable transactions which are not Revenue (i.e. sale of capital assets etc.)
Rounding off differences which are immaterial in nature
Deferred sales (or advance incomes) booked in wherein GST is charged (picked up in Box 4) but are liability items in balance sheet (non-Revenue).
Audit adjusting entries passed directly to the General Ledger module which affected the Revenue account - but were not picked up in GST Box 4 report.

3. HOW TO SET A CHART OF ACCOUNT AS REVENUE ITEM?

Go to Chart of Account. Select the COA to set as Revenue Item. To show the amount in Box 13 of the GST Form 5, simply tick the option Revenue Item at the bottom of the COA screen.