Child pages
  • Recording bank interest and charges

You are viewing an old version of this page. View the current version.

Compare with Current View Page History

« Previous Version 2 Next »

This information applies to MYOB AccountRight version 19. For later versions, see our help centre.


 

 

ANSWER ID:9077

Some bank transactions are not usually known until you receive your bank statement. This support note explains how to record bank interest and charges using ther Bank Entry feature of your software.

Want to see this feature in action?

Image

Watch our demonstration video.

The tax/GST codes used in this support note are examples only. Please check with your accountant or the ATO/IRD for advice on the applicable tax/GST codes for your circumstances. 
Bank transactions and the GST

Regarding bank interest and bank charges and your BAS, the ATO have ruled that:

  • Bank interests paid by you or bank fees charged to you are reported both at G11 Non-capital purchases and G14 Purchases without GST in the price. So bank charges and interest paid are entered using the FRE Tax Code.
  • Any bank interest received by you is reported both at G1 Total Sales and G4 Input taxed sales. Bank interest received is entered using an Input Taxed Sales Tax Code, which may need to be setup in your company file.

To setup the Input Taxed Sales Tax Code:

  1. Go to the Lists menu and choose Tax Codes.
  2. Click New.
  3. Fill in the various fields as per the example below, including your linked GST accounts.
    Image
Recording bank interest and charges
 Banking transactions are typically entered using Receive Money and Spend Money, but as bank charges are usually entered when reconciling your cheque account, they can be entered using the Bank Entry function from within the Reconcile Accounts window.

To do this:

  1. Go to the Banking command centre and click Reconcile Accounts.
    Select your Account and enter the Bank Statement Date.
    Click Bank Entry.
    Note: In classic AccountRight versions, such as v19, the Bank Entry function is available via the Actions button on the Reconcile Accounts window.
    Enter the transaction details then click Record. The window below shows an example Bank Entry.
    Image
The tax codes used in the example above are FRE for the bank charges and ITS for the bank interest earned. Please check with your accountant or the ATO for advice on the applicable tax codes for your circumstances. 

Upon returning to the Reconcile Accounts window, you will notice that any Bank Entry transactions recorded through this window have been automatically selected as Cleared.