Understanding First BAS After Opening Balances in Strata Master

Summary

This article clarifies how GST is recorded in Strata Master when entering GST in opening balances, and how that affects the first BAS report.

Topics discussed in this article are software related:

• How GST is entered into opening balances
• What GST entries are included in the BAS report
• The normal process to account for the opening balance GST
• Possible variations to the process
• Other Important Notes

Note: Support is limited to providing 'guidance only' for Taxation products, with suggestions and assistance regarding how to use the software.

How GST is entered into opening balances.

GST in opening balances is entered to reflect the GST on the prior managers Balance Sheet. This in turn should align with the prior managers BAS report (or similar if they do not use Strata Master). Review the entries into opening balances that reflect on the Balance Sheet.

Training, by our Education section, in Opening Balances will cover this process. Training in GST for Strata Managers will assist with understanding the first BAS.  You can book to join both GST training and opening balances training, often free of charge, on our website.

What GST entries are included in the BAS report.

Only transaction entries with GST are reflected in the BAS report. Opening balances are not transactions. What this means is that opening balances GST is not reflected in the first BAS report and a difference will be noted. This difference is expected and will reflect the GST in opening balances.

The normal process to account for the opening balance GST.

1. Obtain a final BAS report (or similar report ) from the prior agent. This is usually done at time of taking on the Plan. The prior agent may not lodge this return as they no longer have funds to make a payment. Confirm with them if you have any queries.

2. Provide both the current BAS report and the prior agents BAS report to the BAS agent (or Accountant).

3. The BAS Agent collates the figures from both reports and provides the collates figures to the Taxation Office.

4. The refund or payment made then corrects the difference on the first BAS report.

Possible variations to the process.

1. In step 1 above the prior agent may have lodged a quarterly return and made the payment prior to forwarding reports and funds.

2. When entering opening balances, there may be a change to the status of GST registration from the status when managed by the prior management.  If so, discuss your options with your BAS Agent. While it is best to enter the GST status In Strata Master as you intend to move forward, in this circumstance, you may need to enter as reflecting the prior agents figures and then immediately change the status before continuing to process levies or invoices.

Other Important Notes

The following factors will affect the steps you take to reconcile the first BAS after take-on.

•  Creditor--GST Balances provided by previous Managing Agents may be incomplete or insufficient information is obtained.
• In many cases GST is not split between Admin and Capital Works/Reserve Funds.
• The opening balance information provided depends upon the accuracy of the accounting for GST by the previous manager.
• The entry of Levy arrears balances for a GST Registered Plan will post the GST owed on these balances to the Creditor--GST accounts for the appropriate Fund and in order to replicate the Balance sheet received on handover the difference in GST is brought to account using the Opening Balance wizard.

For Accounting assistance, for example change in GST status or a plan without a prior BAS report, please contact your BAS Agent or Accountant.

The staff of MRI Software Ltd limited have taken due care in preparing this Knowledge Base material, however nothing contained herein modifies or alters in any way the standard terms set out in the STRATA Master agreement.