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115mar
February 26, 2022
Question

PAYG Installment Liability Account

  • February 26, 2022
  • 2 replies
  • 0 views

I need help, please.

 

When I do my BAS, I record the PAYG instalment amount, and then I record payment from the GST tab.

 

I can see a negative amount next to PAYG Instalment Liability on my balance sheet. 

 

Is this the way how I should do it?  Please let me know how I can get rid of my balance sheet negative amount.

Thanks

 

 

 

 

2 replies

I
IntuitAika
February 28, 2022

Hi 115mar,

 

After lodging the BAS, QuickBooks Online will automatically create a journal entry to move the GST Liabilities payable amount to the ATO Clearing account. Once you record the payment in the GST tab, it will be automatically allocated to ATO Clearing account. 

 

Feel free to message us back if you need further assistance. Have a great day! 

M
maddoglee
April 29, 2022

Hello, 

 

I am having this same problem, but your answer refers to "GST liabilities". The question is about PAYG Instalment liabilities.

I cannot for the life of me, figure out why Quickbooks does not record my payment of the PAYG Instalment when I pay the BAS. 

I thought it would work the same as the GST liabilities account. 

 

My PAYG Instalment liabilities account is forever going negative even though I've been paying the instalment (through the BAS)

    I
    IntuitSheila
    April 29, 2022

    Thanks for joining this thread, maddoglee!

     

    Let me provide some information about PAYG Instalments in QuickBooks Online. When PAYGI is enabled in the GST settings, the PAYG Instalment Liabilities is created. And when you lodge your BAS, QuickBooks Online will automatically create a journal entry against the PAYG Instalment Liabilities account and the ATO Clearing account. 

     

    Furthermore, the journal entry from the lodged BAS offsets any entry you've made for the PAYG Instalment expense. If you wanted to zero out the PAYG Instalment Liability account, you can create a journal entry.

     

    Also, you can check the articles below to learn more about Reporting PAYG Instalments on BAS and IAS and GST Chart of Accounts and Lodgement Journal Overview. 

     

    Feel free to comment below if you need more help. The Community is here to help you.

    M
    maddoglee
    August 2, 2023

    I finally figured this one out! 

     

    I had not inputted the actual taxable amount into QBO (PAYG + amount owed to the ATO)

    I use an "Income Tax Payable" account to record the actual tax owing to the ATO, then I used journal entries dated at EOFY which split the amounts that I paid to the ATO and the remaining PAYG amount. I could then match those amounts using journal entries to zero out my PAYG Instalment liabilities account. 

     

    My mistake was only recording the debt owed to the ATO, therefore I wasn't recording what I actually had paid the ATO in advance through PAYG. 

     

    I hope this helps someone who has the same problem as I had. 

    I
    IntuitAika
    August 2, 2023

    Thanks for joining this thread and for sharing on how you resolve this one, maddoglee. We appreciate it.

     

    Feel free to post if you need any help with QuickBooks Online. Have a great day! 

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