Set the reporting preference

1. Go to the Setup menu > Preferences. The Preferences window appears.
2. Click the Reports & Forms tab and select the preference, I Report Taxable Payments Made to Contractors.
3. Click OK.
   Whenever you record a Spend Money or purchase transaction, the Reportable Payment option will appear in the transaction window. Select this option to mark the transaction as being a reportable payment.
   
   Set up suppliers to report
4. Go to the Card File command centre and click Cards List. The Cards List window appears.
5. Click the Supplier tab.
6. Click the zoom arrow of the card you want to set up. The Card Information window appears.
7. Click the Buying Details tab.
8. Select Report Taxable Payments. In the message that appears, choose whether to report any existing transactions for the supplier for the current financial year. Note that you can later remove payments from reporting.
9. Click OK. The Cards List window reappears. Whenever the card is selected in a Spend Money or purchase transaction, the transaction is marked as reportable by default. 

1. Go to the Purchases command centre and click Report Taxable Payments. The Taxable Payments Assistant opens.
2. Click Next. The Company Information window appears.
3. Enter any company information that doesn’t appear by default.
4. Click Next. The Review window appears.
   In this window, you can click Review Your Transactions to:
   • review all transactions marked as reportable
   • change the reporting status of transactions.
5. Click Next. The Create window appears.
6. Click View Taxable Payments Report. The Taxable Payments Annual Report (Detail) report appears. You can use the report to help you complete your ATO forms, or to keep for your records.
7. If you're lodging the Taxable Payments Annual Report file:
   1. Click Create Taxable Payments File. The Save As window appears.
   2. Select the location to store the file and click Save.
8. Click Finish to close the assistant.

The ATO require that overseas addresses are entered in a specific format when using the Taxable Payments Assistant:

• Enter the overseas State and Postcode in the Suburb field.
• Enter OTH in the State field. The Postcode field will default to 9999 and can't be changed.

Here's an example:

Here's an example of a supplier card with an overseas address:

Because the purchase is dated before the reporting period, AccountRight won't automatically mark it as reportable. This means the payments on that purchase, which need to be reported, won't automatically be included on the Taxable Payments Annual Report.

To identify these purchases and mark them as reportable:

1. Run the Supplier Payment History report for the reporting period, for example 01/07/2015 to 30/06/2016.
2. Take note of the purchases dated prior to 1 July where payments were applied after 1 July.
3. Open the Purchases Register (via the Purchases command centre).
4. Set the date range to capture the purchases noted at step 2.
5. On the All Purchases tab, repeat the following for all purchases noted at step 2:
1. Click the zoom arrow to open the purchase.
2. Select the Reportable Payment option.
3. Click OK.

If you used the taxable payments features in AccountRight v19 before upgrading to the new AccountRight, you'll notice the following differences:

• A new system preference to activate taxable payments reporting.
• Individual transactions can be marked as reportable (spend money, purchase orders, and bills).
• Employee cards can no longer be used to track taxable payments. If you previously used employee cards to track taxable payments in AccountRight v19, see the Reporting taxable payments in the new AccountRight support note for more information.
• A new Taxable Payments Assistant to help you review reportable transactions and generate the Taxable Payments Annual Report.
• A new Taxable Payments Annual Report [Detail] (Reports > Index to Reports > Purchases > Payments > Taxable payments).

For suppliers previously identified for taxable payments reporting in AccountRight v19, their supplier cards will still be setup for taxable payments in the new AccountRight. In addition, all new spend money and purchase transactions for these suppliers will be marked as reportable by default.

However, existing transactions for the supplier for the current financial year can now be marked as reportable.

There are two ways you can do this, depending on how many transactions you have for these suppliers:

• If you only have a few existing transactions, select them as reportable when you generate the taxable payments report.
• If you have many existing transactions, complete these steps:

1. Go to the Card File command centre and click Cards List.
2. Click the Supplier tab.
3. Click the zoom arrow next to a supplier whose transactions you want to select as reportable.
4. Click the Buying Details tab.
5. Deselect then re-select the Report Taxable Payments option.
6. In the message that appears, click Yes to report existing transactions for the supplier for the current financial year.
   Note that you can remove payments from reporting when you generate the taxable payments report.
7. Click OK.
8. Repeat steps 3 - 7 for each supplier whose existing transactions you want to mark as reportable.