How to correct and claim a GST error in a finalised return (New Zealand businesses only)

When GST has been incorrectly managed and the transaction is locked in a final GST return, Farm Focus has a tool called Late GST Claim to correct this in the next return keeping your records clear and compliant.

To make a late GST claim:

1. Find the incorrectly coded line by

   1. going to Actuals > Completed, and click on the transaction/invoice, or

   2. go to Reports > GST return, open the return containing the line, scroll down to Coded Lines and use the view icon to open the record and click +Edit. 
          

2. On the coded line that needs correcting, click the three vertical dots, and select Late GST claim.   

3. In the modal choose the correct GST type, and click Create.

The GST type will be updated and an orange token will appear next to the transaction, confirming that a late claim has been applied. You can click this token to undo the change, as long as the next GST return hasn’t been submitted.                                                                                          

Clicking the orange token opens the related journal entry. You’ll see a reference to the late claim in the header. The journal will display both the original and corrected lines, with the total value set to zero. You can also view the original transaction from here. If the GST return hasn’t been filed yet, the Undo option will still be available.

The adjustment will go through the next GST return, and can be checked by scrolling to the bottom of the GST return and going to the Late Claims tab.

Please note:

• Once a late claim is made, the original record is locked. You can't change the coding unless you undo the claim before the next return is submitted.

• You can undo the change up until the return is filed with Inland Revenue.

• Late GST claims are included in the Accountants Annual Report.

• Changes to zero-rated GST lines are not available through late claims. Please consult your accountant for advice.

• If the invoice is partially paid, you can select and edit only the necessary coded line.

• If a late claim journal is applied, GST will automatically adjust for future payments.

TIP:
Consult your accountant about best practices for recording late GST claims.