Add Transactions - using the Gross Up button.
The
Gross Up
button effectively increases the net amount to include deductions, such as taxes, that would be incurred by the receiver.
The
Gross Up
button is most commonly used when recording stock purchases or sales or fibre sales from a Tax Invoice.
For Example:
The Tax Invoice for the sale of 300 Merino Ewes shows the Sale Total of the ewes not including the GST, (i.e. the Net Amount) as $27,000 and underneath is the GST on livestock amount, $2,700.
Note:
-
This will automatically add the GST to the entered Gross Amount, so the transaction reflects the correct GST and the Net Amount
-
The Net Amount represents amount after taxes have been subtracted
-
The Gross Amount represents an amount that includes taxes
Article ID 1722