A Supplier Invoice with GST content where the Invoice total is zero and system is GST Payments basis.
There is an issue with the software when a user enters a supplier invoice with the total value being zero, but with some GST content, and the system is GST Payments basis.
The software will not display the zero invoice when making a payment to the supplier because the invoice appears to have been paid - i.e. total is equal to the amount paid.
Therefore the GST content will not be reported to IRD, and cannot be claimed.
This situation arose when the user received an invoice for Stock in Transit.
The initial invoice was keyed in against the GL account for "Stock in Transit", and the GST code was set to Exempt.
When the goods arrived the user keyed in a single invoice - zero value - where the stock items were received and then a line entered to contra the original entry to "Stock in Transit" - again GST Exempt.
The first invoice was paid and appeared in the GST detail report under GST exempt lines
The second invoice never appeared to be paid and no GST was reported.
The correct way to process this would have been when the goods arrived
- do a credit note against the "Stock in Transit" account
- process the second invoice with the stock receipt, for the appropriate amount.
The original invoice would have been paid - and it would have shown as GST exempt.
When the second invoice and the credit note were 'paid' with a zero payment, the GST would have been claimed as well as showing the credit note as GST exempt.