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Steps to record Cash Boost Payment inside Xero

By 02/06/2020 No Comments

Step 1 – Record your BAS as a purchase bill

https://pp.tax/wp-content/uploads/2020/04/CB1.png

Note: in this example, the client pays quarterly GST and monthly PAYGW and therefore will be eligible to receive a credit equal to 300% of his/her March PAYGW, ie. 3 x $3,000 = $9,000

The ATO will offset the $9,000 against the March quarter BAS in the Integrated Client Account and transfers a $4,000 refund into their nominated bank account.

Step 2 – Record a Credit note in Xero for the ATO credit

https://pp.tax/wp-content/uploads/2020/04/CB2.png

Step 3 – Apply this credit to your outstanding March quarter BAS

The remaining $4,000 of the ATO credit can be either applied against your future lodgements or the ATO will deposit this amount into your nominated bank account. (example below)

https://pp.tax/wp-content/uploads/2020/04/CB3.png

Step 4 – Reconcile refund received from the ATO (or remaining payment on BAS)

https://pp.tax/wp-content/uploads/2020/04/CB4.png

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