The Goods & Services Tax in LILAC 3
LILAC 3 contains extensive support for the Australian Goods & Services Tax regimen.
The general assumption is that all purchases, sales, prices and most presentation on documents will proceed in GST inclusive terms. So for example when an sales invoice is created. the prices, extensions and total(s) will all include GST as they are presented on the document.
Provision is made for the appropriate regulatory presentation on sales invoices, i.e. the title Tax Invoice, the entity's ABN number and the amount of GST included presented separately.
The handling of products such as fresh food which are GST exempt is catered for via a Taxable check box in Parameters Product Groups document. i.e. all products which are members of the same group must be either Taxable or not.
GST Exempt Customers & Suppliers
When selling to or purchasing from entities who are nor subject to GST (e.g. import & export) a check box is provided in the debtors account and creditors account documents titled "Exempt". If this check box is ticked no GST will be charged on transactions with this entity.
Most accounting entries related to expenditure and revenue may have GST implications. The relevant posting documents such as Creditors - Posting, General Ledger - Payment, and Debtors - Posting have Taxable check box columns. A tick in this box against a particular line of entry, indicates that the value being posted includes GST and that 1/11th of the amount should be posted to the BALANCE GST account and 10/11th's to the explicitly nominated account. By default the setting in the Taxable check box is established from the Taxable check box setting in the General Ledger - Chart of Accounts document. This means that the GST applicability of an entry can be routinely associated with the general ledger account code that the expenditure or revenue is attributed to.