Banklink & October 2010 GST Changes

Getting ready for the GST changes in BankLink

All BankLink Users will need to change the GST rate in your file/s  to 15%

1 Open your file/s and click Other Functions, GST Set Up

BankLink displays the GST Set Up window

2 Select the Rates tab

3 In the Effective Dates field for Rate 2, enter 1/10/10

4 In the Rate 2 field for each GST class of 12.5000, enter the new GST Rate of 15.000

5 Click OK

BankLink Books saves the rates, and they are effective as of 01 October 2010.

BankLink Software Update – Necessary for GST rate change

  • Open your client file/s and click Help, Check for updates

Banklink displays the Check for updates confirmation window

  • Click Yes

BankLink accesses the update website and compares the installed software version to the latest version, then displays a list of the updates available

  • Click the check boxes beside the updates and click Download Now

BankLink downloads the updates and displays a confirmation window informing you that the updates have been downloaded and asking if you want to install them now

  • Click Install now to install the updates you have downloaded
  • The installation wizard will appear,  follow the prompts to complete your update.

GST Rate Change – Invoice Plus

At 01 October you will need to update your Invoice Plus for the 15% GST rate before creating any invoices.

Instructions:

Click on Setup from the Menu

Click on GST Categories (the window below will appear)

Double click on the GST line as shown above (the window below will appear

Change the Description and Rate so it looks like the screen below

Click Save

Calculating GST

For the 12.5% rate, the GST component of a GST-inclusive amount can be calculated by dividing by 9.

For the 15% rate, the GST component will need to be calculated by either multiplying the GST-inclusive amount by the fraction 3/23.Instead of using the 3/23 fraction you can also divide the GST-inclusive amount by 7.66 recurring to calculate the GST component.

Multiplying by the fraction 3/23

The fraction method is calculated using the following formula:

Rate of tax = 15% = 15% = 3
100 + rate of tax 100 + 15 115 23

To find out the GST component of a GST-exclusive amount, multiply the GST-exclusive amount by 15%.

Example

Value of goods $1,500.00
GST at 15% $225.00
Total price $1,725.00

To calculate the GST component of a GST-inclusive amount, multiply the GST-inclusive figure by 3, then divide by 23.

Using the example above:

Step 1: $1,725.00 multiplied by 3 is $5,175
Step 2: $5,175 divided by 23 is $225.00 ( the amount of GST).

Note

You can also calculate the GST component by dividing the GST-inclusive price by 7.66666666. However you must use at least 8 decimal places to calculate the correct GST component as using fewer decimal places can result in an incorrect answer.

Using the fraction method (multiply by 3 and then dividing by 23) will always provide you with an accurate answer.