Overview

When setting up Australian legislation in Sage X3 several steps are required to ensure proper functionality. These steps are necessary to report Goods and Services Tax (GST) and Business Activity Statement (BAS) values to the Australian Tax Office (ATO). As detailed in this document, the setup involves parameters, tax codes, and creating company groups for reporting.

Technical requirements

There are important settings regarding activity codes and parameters that are required to implement Australian legislation functionality in Sage X3.

Activity code

You need to activate the KAU - Australian localization activity code.

Parameters

The following parameters are in the LOC chapter, AUS group, in the Parameter values function (ADPVAL):

AUSABNWRN - Warn supplier without ABN

Set this parameter to Yes to be alerted when a company or supplier does not have an Australian Business Number (ABN), which is required for Australian tax purposes. This warning displays when entering or importing a supplier BP invoice in Finance or Distribution. An ABN is also required when setting up GST groups for reporting.

AUSVAT - Australian VAT

Use this parameter to take advantage of the Goods and Services Tax (GST) functions for Australian VAT reporting and preparing for the Business Activity Statement (BAS). This includes the GST groupings and GST reporting periods functions.

By default, this parameter is set to No at the folder level and Yes at the legislation level.

If set to No for an Australian company, that company is excluded from GST reporting and cannot be added to a GST group. It is also excluded from GST groupings consistency checks.

AUSGSTASOF - Default As of date

Use this parameter to define the default As of date when optionally including unreported transactions in a GST reporting period. When you enter a date for this parameter, that date is used in the As of date field when you select the Include unreported transactions check box. You can still enter a new date in the As of date field even if you define a date in this parameter.

AUSTMPBLK - Blocking on temporary journals

Use this parameter to define the type of warning message displayed when GST data contains journal entries with a Temporary status.

Warning - This is the default status.

Blocking - Set the parameter to "Yes" to generate a blocking message.

Postal codes

The Australian post code look up in Sage X3 is currently based on the Australia Post 2012 post code data file.

Australian derived language

An Australian derived language is available to show some fields with Australian terms. The main changes are:

  • Change the label in BP, Customer and Supplier from Site Tax ID no (CRN) to Company number. Fill-in this field with the Australian Company Number or Australian Business Number of the BP. This is also the number which appears in the Business Partner ABN column in the GST report.
  • Change the label in Site from Site Tax ID number (CRN) to ABN.
  • We have replaced the term VAT with GST.

Fixed assets depreciation methods

Allowable depreciation methods are determined by the Australian Tax Office (ATO). They include Diminishing value, Prime cost and Low value pool. The AUS legislation only includes depreciation methods for Diminishing value (code AD) and Prime cost (code AL).

Bank files

ABA (Australian Bankers Association) files are in a standard format that is used by Australian banks for batch transactions. This format has been implemented in the AUS Legislation using the standard Bank file definition function (GESTFB).

Setup

Remove the self-balancing line from the “total” definition if not required.

Bank File Definition

  • ABA Header
  • ABA Detail
  • ABA Total

Financial reports

Income Statement and Balance Sheet are supplied. These are delivered with the standard “Financial Data Extraction” tool. The definition of these reports is consistent with AASB 101 (as of June 2010). This is the Australian standard that defines the presentation of financial reports.

Setup

Report codes have been supplied with the AUS legislation. Accounts must be mapped to the appropriate report code to be included on the financial statement. Refer to Appendix 1: Replaced or removed tax codes and Appendix 2: Report codes (Position).

FDE reports

POSITION - Balance Sheet

PERFORM - Income Statement