How to Use GST Returns in Profitz

Description: The GST Return function in Profitz allows you to manage, review, and complete your Goods and Services Tax (GST) obligations. Profitz automatically tracks GST on Accounts Payable (input tax) and Accounts Receivable (output tax), helping you prepare accurate GST returns for the Inland Revenue Department (IRD).

Step‑by‑step instructions

Before starting, ensure your company GST setup is correct and that all AP and AR transactions for the period have been entered.

1. Understand How GST Works in Profitz

Profitz automatically assigns GST to the correct control accounts:

• GST Input Tax (AP): Applied to creditor invoices (Accounts Payable).
• GST Output Tax (AR): Applied to debtor invoices (Accounts Receivable).

Important notes:

• New Zealand GST is 15%.
• Some transactions may be GST Exempt (0%).
• Import GST may be 100% GST depending on the transaction.
• Accurate and timely data entry ensures correct GST reporting.

2. Open the GST Return Register

Navigate to General Ledger › GST Return.

The system displays a list of all GST returns created in Profitz.

3. Create a New GST Return

1. Click Create Return.

   

2. Enter the following details:
   • Cutoff Date: The end date of the GST period. Example: For a taxable period ending 31 May, the cutoff date is 28 June.
   • Description: Optional text that appears on the GST report. Example: Dec 2023 / Jan 2024
   • Comment: Optional notes for internal reference.

3. Click OK.

   

The system confirms Tax Audit Entry Created.

Click OK to return to the GST Return list.

4. Edit an Existing GST Return

1. Select the return from the list (single‑click the row).
2. Click Edit.

5. Use the GST Return Tools

Inside the Edit screen, the following tools are available:

Save: Save changes to the return.

• Cancel: Exit without saving.
• View Transactions: View all AP and AR transactions included in the return.
• Return Completed: Mark the GST return as completed.
• Cancel Return: Cancel the GST return if created in error.
• Refresh Return: Reload the return to update calculations.
• Preview: Preview the GST Return report.

6. Review GST Setup (AP & AR Defaults)

Profitz uses default GST tax codes for AP and AR:

• AP – Input Tax (S In): Default GST rate for supplier invoices.
• AR – Output Tax (S Out): Default GST rate for customer invoices.

Note: “In” = Input tax (AP) “Out” = Output tax (AR)

7. Set Default GST Rates on Suppliers and Customers

Set GST for a Supplier (AP)

Navigate to Creditors › Creditor Setup.

1. Edit the Supplier.
2. Select the Additional Info tab.
3. Select Tax Code (e.g., S In).
4. Click Save.
5. Click X to close.

Set GST for a Customer (AR)

Navigate to Debtors › Debtor Setup.

1. Edit the Customer.
2. Select the Additional Info tab.
3. Select Tax Code (e.g., S Out).
4. Click Save.
5. Click X to close.

FAQ

Why is my GST return missing transactions?

Check that the Cutoff Date is correct and that all AP/AR transactions were entered before creating the return.

Can I change the GST return after creating it?

Yes. Select the return and click Edit to update details before marking it as completed.