How to read and understand the gst reconciliaton report [xero]

Updated: 26/01/2022
Article #: 264


The GST Reconciliation Report is a report designed to help users reconcile the GST posted in each lodgement period to ensure the GST reported in the Activity Statement is correct. 

Report Dates & Periods

The report uses the period and basis from the Activity Statement settings set out in the Financial Settings screen. 

For the report to run correctly, the Start and End dates used to run the report must be correct:

  • Report Start Date
    • For Businesses that report GST on Accrual Basis, the Start Date should always be the Conversion Date of the relevant Xero Organisation;
    • For Businesses that report GST on Cash Basis, the Start Date should always be the 1st date of the Quarter prior to the Conversion Date. Unless your conversion date is the same as the date of your GST Registration. In this case, you should use the Conversion Date. 
  • Report End Date
    • This should always be the last day of the lodgement period you are reconciling.

Sections of the GST Report

The GST Reconciliation Report is part of Xero's Standard Reports' suite. The report is divided into specific sections, each section focusing on different reconciliation areas. 

GST Collected

The GST Collected section of the GST Reconciliation report provides a Summary of the GST on Income Accrued and lodged to the ATO across all lodgement periods.

è  The GST Reconciliation Report - GST Collected Section

Report Fields 

  • GST Period > This column lists all the Activity Statements lodgement periods;
  • GST Collected > This column reports the GST total for all transactions posted using the Tax Rate: GST on Income. This value should match the total of GST on Income from the GST Audit Section of the Published Activity Statement Report for the period (rounded to the full dollar); 

    è  The Published Activity Statement Report - GST Audit - Total GST on Income


  • Adjustments > This column displays the adjustment gross amount (adjustment amount inclusive of GST) entered in the G7 field from the GST Calculation Worksheet of the Published Activity Statement Report for the period;
  • Filed > This column lists the total GST Collected (1A or G9) posted in the Published Activity Statement Report for the period (rounded to the full dollar);

    è  The Published Activity Statement Report - Activity Statement - Amount you owe to the Tax Office


  • Unfiled > This column displays the running total of any GST Collected that has not been included (or has been subsequently removed) in the Activity Statement Published Reports.
    The applied formula to calculate the Unfiled Running Total for each GST Period line is: (Opening Unfiled + GST Collected) - Filed.

GST Paid

The GST Paid section of the GST Reconciliation report provides a Summary of the GST on Expenses Accrued and lodged to the ATO across all lodgement periods. 

è  The GST Reconciliation Report - GST Paid Section

Report Fields

  • GST Period > This column lists all the Activity Statements lodgement periods;
  • GST Paid > This column reports the GST total for all transactions posted using the Tax Rate: GST on Expenses. This value should match the total of GST on Expenses from the GST Audit Section of Published Activity Statement Report for the period (rounded to the full dollar); 

    è  The Published Activity Statement Report - GST Audit - Total GST on Expenses


  • Adjustments > This column displays the adjustment gross amount (adjustment amount inclusive of GST) entered in the G18 field from the GST Calculation Worksheet of the Published Activity Statement Report for the period;
  • Filed > This column lists the total GST Paid (1B or G20) posted in the Published Activity Statement Report for the period (rounded to the full dollar);

    è  The Published Activity Statement Report - Activity Statement - Amount the Tax Office owes you


  • Unfiled > This column displays the running total of any GST Paid that has not been included (or has been subsequently removed) in the Activity Statement Published Reports.
    The applied formula to calculate the Unfiled Running Total for each GST Period line is: (Opening Unfiled + GST Paid) - Filed.

GST Account Transactions
This section of the GST Reconciliation Report lists all transaction lines posted directly to the GST Account.

è  The GST Reconciliation Report - GST Account Transactions


Report Fields

  • Date > This column displays the transaction date;
  • Transaction > This column displays the description typed on the transaction line;
  • Amount > This column displays the transaction amount.

    è  The Activity Statement Purchase Transaction

GST Owing
The GST Owing section of the report reviews the GST Amounts included in all published Activity Statements Reports and compares them to the total GST Paid to or refunded from the ATO from the GST Account Transactions. 

è  The GST Reconciliation Report - GST Owing

Report Fields

  • Opening Balance > This field represents the sum of all Filed Amounts for periods prior to the Start Date of the report
  • GST Collected and Filed > This field represents the total of the Filed GST Collected section of the report
  • GST Paid and Filed > This field represents the total of the Filed GST Paid section of the report
  • Payment made > This field represents the total of all GST Account Transactions (Excluded transactions posted to GST on Imports)

GST Account Summary

The GST Account Summary provides different insights depending on the GST Reporting Method.

GST on Accruals Basis

If the GST Reporting Method is on Accruals Basis, this section will only display two fields: GST Owing and Unfiled GST.

GST on Cash Basis

If the GST Reporting Method is on Cash Basis, this section will display three additional fields: GST in Accounts Receivable, GST in Accounts Payable and GST in Expense Claims.

è  The GST Reconciliation Report - GST Account Summary

Report Fields

  • GST Owing > This field displays the net value of GST filed amounts not yet paid or refunded from the ATO (as per the Closing Balance of the GST Owing Section);
  • GST in Accounts Receivable > This field displays the GST component of all Unpaid (Approved) Sales Invoices and Credit Notes as of the end date of the report (displays only when the reporting method is Cash);
  • GST in Accounts Payable > This field displays the GST component of all Unpaid (Approved) Purchases Transactions and Credit Notes as of the end date of the report (displays only when the reporting method is Cash);
  • GST in Expense Claims > This field displays the GST component of all expense claims waiting to be reimbursed as of the end date of the report (displays only when the reporting method is Cash);
  • Unfiled GST > This field displays the net value of unfiled GST Totals (Unfiled GST Collected - Unfiled GST Paid).

Report Final Balances

The GST Reconciliation Report provides two final balances as a final check the GST has been reconciled correctly.

  • Balance at > This field displays the expected balance of GST as per the total of the GST Reconciliation Report as of the end date of the report;
  • GST Account Balance > This field displays the actual GST balance from the Balance Sheet Report as of the end date of the report.

 

 






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