Capital Acquisitions

Marlin GTX enables capital acquisitions to be recorded for GST and BAS reporting.

A capital acquisition is a purchase of a fixed asset exceeding $300.

Typically, fixed assets are:

• Plant and Equipment
• Motor Vehicles
• Office Equipment
• Furniture and Fittings

A capital acquisition is not a repair or a replacement part to an existing fixed asset.

Recording a Capital Acquisition in Marlin

It is a requirement of GST to record all capital acquisitions (fixed asset purchases) separately for the BAS, appearing as a G10 item – GST Capital Acquisitions.

The GST on a capital acquisition must go to the GST Tax Paid Capital Acquisitions account.

This includes any lease residuals or payouts.

Capital acquisitions can be recorded as a Journal entry in Marlin, or as a Purchase Entry.

As a Journal

From the Marlin menu toolbar, select Main > Data Entry > Journals.

Enter the Date, GL Period and Salesperson, as well as a meaningful description of the capital acquisition.

Click on the black arrow head (beside the green +) and select Supplier.

Press Tab and select the Supplier from the dropdown list, then enter the date and Their Reference.

Enter the full amount of the invoice as a positive amount under Variation in the appropriate period.

On the next line, select the GST Tax Paid Capital Acquisitions account and enter the GST amount as a debit.

On the next line, select the appropriate asset account (eg. Plant & Equipment, Motor Vehicle) and enter the purchase price excluding GST as a debit.

Check that the debit and credit column totals are the same and then click on the Finalise button.

As a Purchase Entry

If you choose to enter the capital acquisition as a Purchase Entry, you will then need to journal the GST component from the GST Paid account to the GST Capital Acquisitions account:

• CR GST Paid
• DB GST Capital Acquisitions

This will ensure it shows under Capital Acquisitions on the BAS Report.

Asset Sales

The sale of a fixed asset needs to be handled differently in GTX.

A tax invoice needs to be provided to the purchaser of the equipment, however in many cases this can be of a high value and it will affect your Sales Statistics and GP$.

Only in this case is it recommended that you raise a tax invoice using Word, ensuring the date, your store details and ABN are recorded.

This invoice will have the GST recorded and this amount will be recorded in GTX to ensure you are compliant with your GST obligations.

Please discuss the following entry with your bookkeeper:

• Once payment is received allocate to your Plant and Equipment account, Motor Vehicle account, etc depending on the asset category sold.
• Your bookkeeper or accountant will then take up the Journal for the Sale of Equipment and amend the Asset Register.
• The journal will include:
  • GST Tax Collected account
  • Disposal of Asset – e.g. Plant and Equipment account, Motor Vehicle account
  • Reversal of Accumulated Depreciation accounts – e.g. Plant and Equipment, Motor Vehicle
  • If balance of journal is a profit on sale account
  • If balance of journal is a loss on sale account

Recommendations:

• Ask the purchaser to sign the invoice and scan this in and file it against the customer
• Select Main > Customers > Manage Customers
• Click on the customer
• Click on the Attachments tab
• Click on the + icon and attach a copy of the invoice for future reference or in the event that the ATO does an audit of your GST recording against Marlin GTX