Frequently Asked Questions

What do I do about tracking WET in a retail sale of wine?
Last Updated 3 years ago

I believe you would use the "Half retail price" method of calculating the WET on the retail sales of the wine, but check with your accountant if you are not sure.
In Bookkeeping version 3 there is no way to automatically calculate WET on retail sales within the program.
The best you can do is record all retail sales in a separate revenue account and then manually calculate the WET for these sales.
In Bookkeeping Pro and Bookkeeping Standard there is a way to calculate the WET on retail sales as long as you do not need to show the WET amount on the invoice.
Bookkeeping Pro and Standard has an additional capability to record levies and you can use this facility to calculate the WET on retail sales.
The Invoice will show the total price and the GST amount of tax. The Invoice cannot currently show the WET amount on the invoice.
To set this up in Bookkeeping Pro and Standard you do the following:
Create a new sales tax code with the following settings:
Display Name: WET
Sales Tax Description: Retail WET
Percent: 29
Unclaimed Percent: 50
Tax Type: Levy
Cost Base: Ex-Tax
Levy Collected Account: Retail WET Collected (this is an asset account)
Levy Expense Account: Retail WET Expense (this is a revenue account)
Hide Tax Component: ON
Then add a sub sales tax code to this levy code with the following settings:
Display Name: GST
Sales Tax Description: GST
Percent: 10
Tax Type: Sales
Tax Collected Account: GST Collected
Tax Paid Account: GST Paid
Buckets for Total Collected: G01
Buckets for Total Paid: G11
Using the above, for example, if the total sale was $140 including all taxes then the GST will be $12.73 and the WET collected will be $20.30.
On the invoice it will show the total price of $140 and the GST of $12.73. There will be no mention on the invoice of the $20.30 in WET charges.
In the Consolidated Tax statement there will be a line for "Retail WET Collected" with an Ex-Tax amount of $70 (which is the notional wholesale price) and tax of $20.30.
The Consolidated Tax statement will also have a line for "GST Collected" with an Ex-Tax amount of $127.27 (which is the GST exclusive price) and tax of $12.73.
There will be a third line on the Consolidate Tax statement for "Not Taxed Collected" with an Ex Tax amount of $70 (which is the other 50% of the retail price) and tax of $0.00.
If you wish to not have this third entry you could set up the WET levy as 14.5% and 0% unclaimed.

On the Profit & Loss Statement there will be a revenue line for "Retail Wine Sales" (or whatever the revenue account is that you used) with an amount of $127.27 (the ex-gst amount of the sale).
There will be a second line on the Profit & Loss Statement for "Retail WET Expense" with an amount of -$20.30.
Since this is a negative value it is subtracted from the overall revenue and therefore the total Revenue shown on the Profit & Loss Statement will be the amount excluding GST and excluding WET.

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