L2 GST Period Variances

Where you have identified variances in the GST reconciliation (L1) that are not easily identified. Use this workpaper to identify where the error could stem from.

Recommended source documents: GST returns, bank statements, IR account lookup.

Income variances

The outputs entered in L1 will pull through to L2.

  1. Enter output tax recorded in the GL for each GST return period. You may have to run a GST transaction report to identify this value.
  2. Where there is a variance between the output tax per return and the GL, scan the GST transactions for that period for any anomalies including:
    • Income not declared
    • Income declared in error
    • Private use adjustments
  3. When the reason for the variance has been identified record the reason in the explanation column and prepare a journal entry, if required.

Expense variances

The inputs entered in L1 will pull through to L2.

  1. Enter input tax recorded in the GL for each GST return period. You may have to run a GST transaction report to identify this value.
  2. Where there is a variance between the input tax per return and the GL, scan the GST transactions for that period for any anomalies including:
    • Expenses not claimed
    • Expenses claimed in error
    • Private use adjustments
  3. When the reason for the variance has been identified record the reason in the explanation column and prepare a journal entry if required.

Payments/refunds variances

The payments/refunds of each return will be pulled through from L1.

  1. Enter details of payments made or refunds received as per the GL. You may have to run a GST transaction report to identify this value.
  2. Review transactions to confirm the transactions have been coded correctly.
  3. Where there is a variance review bank statements and IR account lookup transactions to confirm what was actually paid, e.g. has interest received on overdue refunds or interest on late payments incorrectly been included?
  4. When the reason for the variance has been identified record the reason in the explanation column and prepare a journal entry if required.