Sales Orders
Saasu doesn’t post any financial entries to the ledger on orders where no payment is received.
Saasu posts financial entries to the ledger on Sales Orders (goods/services haven’t been supplied) where payment has been received but the transaction hasn’t moved to Sales Invoice stage (goods/services have been supplied). Saasu creates the following journal behind the scenes:
| Account | Debit | Credit | Tax Code |
|---|---|---|---|
| Liability: Deposits Received | 100.00 | ||
| Asset: Bank Account | 100.00 |
When you convert a Sales Order to a Sales Invoice we move the money from the Liability: Deposit Received account to the Income account. We call this as a Sales Deposit Transfer (SDT). It’s a transaction that we do automatically behind the scenes.
| Account | Debit | Credit | Tax Code |
|---|---|---|---|
| Liability: Deposits Received | 100.00 | ||
| Income: General Sales | 100.00 |
Purchase Orders
Saasu doesn’t post any financial entries to the ledger on orders where no payment is received.
Saasu posts financial entries to the ledger on Purchase Orders (goods/services haven’t been received) where payment has been made but the transaction hasn’t been move to Purchase Invoice stage (goods/services have been received). Saasu creates the following journal behind the scenes:
| Account | Debit | Credit | Tax Code |
|---|---|---|---|
| Asset: Deposits Received | 100.00 | ||
| Asset: Bank Account | 100.00 |
When you convert a Sales Order to a Sales Invoice we move the money from the Liability: Deposit Received account to the Income account. We call this as a Sales Deposit Transfer (SDT). It’s a transaction that we do automatically behind the scenes.
| Account | Debit | Credit | Tax Code |
|---|---|---|---|
| Asset: Deposits Paid | 100.00 | ||
| Cost of Sales: Goods | 100.00 |
Consumption/Sales Tax
When you assign a GST, VAT or Sales tax code to an item in Saasu, a journal occurs automatically behind the scenes to post amounts to tax payable and tax receivable accounts.
NOTE: Saasu does not do this for income tax This is for consumption and sales tax only.
Example: 15% GST on a New Zealand domestic sales transaction.
| Account | Debit | Credit |
|---|---|---|
| Asset: Accounts Receivable | 100.00 | |
| Income: General Sales | 90.00 | |
| Liability: Tax collected on Sales | 10.00 |
Current Earnings
Saasu posts your earnings from your P&L to the inbuilt account called Equity: Current Earnings automatically. It is the balancing item for the Balance sheet and is a "calculated inbuilt account" rather than a " posting account". Without this balancing account your P&L result would never impact the equity value of a business in the balance sheet.
Payroll – Australia Only
A person earning $1,000 per week from which some tax is removed that is payable to the Australian Taxation Office (PAYG Withholdings). This is done via a Business Activity Statement. 9% SGC Super is also calculated that becomes payable to the employee’s superannuation fund. We have used a fairly commonly used ATO tax calculation called Scale 7: With Tax Free Threshold and No Leave Loading. Saasu creates the following entries when you enter this payroll transaction:
Employment Expense:
| Account | Debit | Credit | Tax Code |
|---|---|---|---|
| Asset: Business Bank Account | 803.00 | ||
| Expense: Employee Base Pay | 1000.00 | W1 | |
| Expense: Employee PAYG | 197.00 | W1, W2 |
PAYG Payable:
| Account | Debit | Credit | Tax Code |
|---|---|---|---|
| Expense: Employee PAYG | 197.00 | W1 | |
| Liability: Employee PAYG Payable | 197.00 |
Super Payable:
| Account | Debit | Credit | Tax Code |
|---|---|---|---|
| Expense: Employee SGC Super | 90.00 | ||
| Liability: Employee SGC Super Payable | 90.00 |
How it Looks in Reports
Profit and Loss:
| Account | |
|---|---|
| Expense: Employee Base Pay | 1,000.00 |
| Expense: Employee SGC Super | 90.00 |
Balance Sheet:
| Account | |
|---|---|
| Liability: Employee PAYG Payable | 197.00 |
| Liability: Employee SGC Super Payable | 90.00 |
Business Activity Statement:
| Tax Code | |
|---|---|
| W1 | 1,000.00 |
| W2 | 197.00 |
What don’t I see any tax in my expense accounts?
Saasu’s Australian Payroll module treats PAYG tax as something withheld as a Liability rather than being an Expense. Pre-tax pay is booked as an Expense through the Base Pay Hourly/Salary component or another component where you have other types of wages and salary components.
