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Wholesale Traders and sales orders

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Enthusiast

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We are a small wholesale business whereby we purchase large items of stock which we thereafter on-sell to our clients. We are currently recording our clients requests as a sales order in our system. A 50% deposit is required prior the order and the remaining amount at Point of Delivery.

 

Seeking some assistance with regards to the following

- When should we we converting this sales order into an actual invoice and thereafter include on our BAS returns.  The timelag between the processing our purchase invoice > Receiving the stock > Onselling bulk items to client can take place of over numerous months.

 

Thank you.

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Best answer

ATO Certified

Community Support

Replies 0

Hi @Debbiesap,

 

Thanks for your patience whilst we looked into your query!

 

You'll need to account for the sale of GST based on your accounting type which can be either cash or accruals.

 

If you're registered on a cash basis, you account for GST on your BAS for the period in which you receive or made payment for sales or purchases.

 

If you're registered for an accruals basis, you account for the GST payable on the sales you make in the reporting period in which you issue a tax invoice or receive full or part payment, whichever happens first.

 

Thanks, JodieH.

 

 

2 REPLIES 2
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Community Support

Replies 0

Hi @Debbiesap,

 

Thanks for getting in touch!

 

We're checking in with a specialist area regarding your query and we'll get back to you as soon as we hear back.

 

Thanks, JodieH.

Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @Debbiesap,

 

Thanks for your patience whilst we looked into your query!

 

You'll need to account for the sale of GST based on your accounting type which can be either cash or accruals.

 

If you're registered on a cash basis, you account for GST on your BAS for the period in which you receive or made payment for sales or purchases.

 

If you're registered for an accruals basis, you account for the GST payable on the sales you make in the reporting period in which you issue a tax invoice or receive full or part payment, whichever happens first.

 

Thanks, JodieH.