Issue

The income tax payable account may be overstated or understated in the Statement of Financial Position. How can I make an adjustment in the current financial year to amend this account?

Cause

The main cause is a reconciliation error made in a prior financial year. The reconciliation on the ATO Income Tax Account and the Integrated Client Account shows an overstated or understated Income Tax Payable account.

Resolution

To make an adjustment for Income Tax Payable

Navigate to Fund level > Transactions > Fund Expense > Fund Income Tax Payment 

1. Enter the difference into Over/(Under) Tax Allocated 
   

To make an adjustment to PAYG Instalment

Navigate to Fund level > Transactions > Fund Expense > Fund Activity Statement

1. Enter Over/(Under) Tax Allocated.
2. Enter the contra-amount in the PAYG Income Tax Installment variation.