On the 1st of October 2010 the GST Rate in New Zealand changed from 12.5% to 15%.
Phoenix has been designed to provide a seamless transition for users which means that no user input is required to affect the GST Rate change, provided you are running Phoenix V5.70 or later. Phoenix has inbuilt rules to automatically handle the change in the GST Rate.
Important: When you produce your GST Report Phoenix will cater for the change in GST Rate percentage automatically - regardless of your reporting period or method. If you account for GST on a payments (Cash) basis, or hybrid basis, or purchased second-hand goods, you may need to make a GST rate change adjustment to ensure you do not pay too much or too little GST.
Additional information on the various areas affected in Phoenix:
When viewing the GST Setup Screen, the percentage rate for each of the GST Rates displayed will be those that are correct for the current period of the GST Control account.
If the current period of the GST Control account spans the transition date e.g. September/October 2010, then the rates displayed will be those at the start of the current GST Period i.e. September.
If the GST Control is not yet active then the rates displayed will be based on the system start date.
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The GST percentage rate change will not alter the default rates specified for sub-categories. The GST rate change only affects the rate percentage, i.e. from 12.5% to 15%.
The rate percentages that you see in the Setup Category window are determined by the GST Control account’s current period.
If the current period of the GST Control account spans the transition date e.g. September/October 2010 then the rates displayed will be those at the start of the current GST Period i.e. September.
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The GST percentage rates of existing dissections are not altered by the GST change.
Rate percentages displayed in the “Rate” column are determined by the account period the transaction is entered in. Hence it is possible to enter a transaction at the previous rate.
If you enter transactions into an account tracked for GST in September 2010 Phoenix will use the GST percentage rate of 12.5%. Once you reconcile or age that account and October 2010 is your current month, Phoenix will automatically use the GST percentage rate of 15%. You will not be able to use the GST percentage rate of 12.5% from the October 2010 period onwards.
The transaction date does not affect rate percentages - it is the period in Phoenix the transaction is entered in.
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The GST rates specified for scheduled transactions will not be altered.
Scheduled transactions will not need to be re-created or edited by the user.
On posting a scheduled transaction, Phoenix determines the correct rate percentage based on the account period the transaction is posted to.
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Power Budgets determines the rate percentage based on the month of a budget entry.
Existing budgets with GST calculation enabled will not automatically update to the new rate. You will need to manually update the GST by performing one of two actions:
•editing an existing cell value, or •running Recalculate GST values option from the Tools menu
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