How do I record "non-allowable" deductions for a business (i.e. for a management reporting purposes)?

Hi WIT,

Thanks for posting in the Community! Non-allowable deductions are expenses that cannot be claimed as business expenses for tax purposes. Before you start recording non-allowable deductions, you need to know which expenses are considered as non-allowable deductions. You can then categorise your expenses into appropriate accounts or you can also setup an expense account (e.g. Entertainment - Non-Allowable). Please note that the amounts showing on your BAS report are those transactions with GST 10% and GST-free tax code. If an expense should not be included or reported on your BAS, you can set the tax code to Out of Scope. 

Also, I would recommend to consult an accountant to ensure that you're using the correct tax code for your transactions and to ensure acccuracy on your tax reporting. If you don't have an accountant yet, you can find one near you here. 

For your reference, you can also check this ATO article: Simpler BAS GST bookkeeping guide. 

Message us back if you have any other questions. Have a nice day!