GST requirement

GST is defined as a percentage that can vary for specific goods and services and can change in the future. Although such provision for multiple tax rates per tax code is made, using effective dates to determine which rate to use is not implemented. When a new GST rate is announced in Australia or New Zealand, the processing requirements are reviewed and changes are implemented where necessary. Optionally, you can set up specific tax codes per Pathway PPR module to hold multiple tax accounts. These tax codes are used to assist in reconciliation of returns and the general ledger.

The implications for the goods and services (GST) happen when debts are either raised, adjusted, or written off, or payments are received, allocated, transferred, or reversed.

The financial transactions generated are used to prepare the tax returns and provide details of cash movement for both the current return plus historical audit information. The Pathway GST development does not cover this component. However, all tax entries generated in the Pathway People, Property, and Revenue (PPR) modules are correct based on cash and accrual movement.

Not all transactions generated within Pathway or an individual Pathway module are tax applicable. The control needs to be at the appropriate level to control this process.

In most Pathway modules, the defined fee or rate is deemed to be inclusive of tax. The tax transaction generated is calculated on this amount: 1/11 for 10% or 1/9 for 12.5% of fee or rate amount. The exception to this is for Applications, Licensing, and the Accounts Receivable modules. The operator can suggest whether the fee or rate specified is inclusive or exclusive of tax.

Rounding parameters are also available to control the calculation of the tax.