Microsoft Dynamics 365 Business Central can be setup to report GST on both a cash and accrual basis using Unrealised GST functionality. This functionality enables GST to be calculated when the invoice is posted and not realised or due until the invoice is paid.
The first step is to activate the functionality by setting the Unrealised GST and Prepayment Unrealised GST to True.
Next step is to define the how the GST is realised in the Unrealised GST Type and select the GST Unreal. Account and Input Tax Cr. Unreal. Account in the GST Posting Setup Card.
You can select Unrealised GST Type from the below options:
| Option | Description |
| Blank | Select this option if you do no want the program to using the unrealised GST feature for the current combination. |
| Percentage | When you select this option, each payments cover both GST and invoice amount in proportion to the payment’s percentage of the remining invoice amount. The paid GST amount is transferred from the unrealised GST account to the GST account. |
| First | When you select this option, payment covers GST first then invoice amounts. In this case the amount transferred from the unrealised GST account the GST account will equal the amount of the payment until the total GST has been paid. |
| Last | When you select this option, payments cover the invoice amount first then GST. In this case, no amount will be transferred from the unrealised GST account to the GST account until the toatl amount of the invoice exclusive GST, has been paid. |
| First (Fully Paid) | When you select this option, payments will cover GST first (as in the First option) but no amount will be transerred to the GST account until the full amout the GST has been paid. |
| Last (Fully Paid) | When you select this option, payments will cover the invoice amount first (as in the Last option) but no amount will be transferred to the GST account until the full amount of GST has been paid. |
And there you have it!! We are now set up to use GST unrealised functionality for GST reporting on a cash and accrual basis.
Now when you post the Invoice, Unrealised GST Account will be impacted. The GST amount will be posted to the unrealised account and stay there until the customer/vendor payment is posted.
When you make a payment, the Realised GST Account will update, reversing out the Unrealised GST Account.
In the example below, I made a partial payment of 50%. So $10 is taken out of Unrealised GST Account and posted to Realised GST Account.
