Accounting for Wine equalization tax
1. Create a liability account using Xero where you will map WET directly.
2. Refresh your chart of accounts in DEAR. The new created account in Xero will now be available in DEAR.
3. Create a service item for WET; you will need to include the additional costs section of a sale invoice in DEAR. Make sure you select the WET account that was created in Xero under the account column to ensure the WET is mapped to the correct COA.
In the example below the WET amount will total to $217.50 (This was worked out by multiplying the total product line items by 29%).
4. You are now ready to sync this invoice with Xero.
5. This is how the above transactions affect the General Ledger Report in Xero.
6. Under Settings in Xero (Click General settings then Financial Settings) you will need to activate the Wine Equalization Tax. An additional tax section will appear in your Business Activity Statements.
Please note that the WET amount will need to be manually entered into the BAS.