After you've set up the tax codes in the online ledger, you can add journals in AE/AO using the tax codes. Based on the tax code selected, the tax amount will be automatically calculated and allocated to the tax collected or paid accounts.
When adding a journal:
Tick Apply Tax to post a journal with tax amounts.
Tax type: You need to select this individually for each journal entry to allocate it to Collected or Paid tax accounts. If you've selected Collected, the tax amount will be allocated the tax code's pre-defined collected account. If you've selected paid, the tax amount will be allocated to the pre-defined paid account.
Tax code: After you select an account, the tax code and tax rate configured for that account will appear.
If you need to add journals with tax code LCT, LCG, or GW, you'll need to do them in the online ledger directly.
Tax Amount: This is calculated automatically based on the tax rate.
When you view a journal using the View All or View for Account options, the tax code, tax type, tax rate and tax amount will display in the original journal transaction. This is useful for tracking purposes.
The GST report in the online ledger will be automatically generated when creating a journal.
The report will include tax amounts based on the following:
For the Balance Sheet accounts, the GST amounts on the reports will show based on the Collected or Paid selections made while posting a journal.
For the Profit or Loss accounts, depending on the account code the GST amount will show under Sales or Purchase based on if the account is an income account or an expense