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4a Prepare Invoices For Debtors
4a Prepare Invoices For Debtors
Invoices must be accurate and they must abide by consumer law and taxation law. Where a
payments clerk is unsure of the legislative requirements to which invoices must conform they
should consult their supervisor.
When preparing an invoice, the payments clerk needs to know some basic information:
what the goods and services supplied were the quantities of goods and services supplied the unit
price of each item
any discounts offered (including those for bulk purchases)
whether GST is payable
Once the payments clerk has this information they can start to calculate the invoice. The first step
is to list all the goods and services and the quantity provided, together with the unit price. Then a
subtotal for each line item is calculated. Finally a total is calculated.
GST
GST is a tax of 10% on most goods and services. It is paid at each step as the goods go from the
manufacturer through various entities (wholesale, retail etc) to the retail customer/ consumer. All
entities along the chain except for the consumer can claim back the GST which they have, in effect,
paid as a credit. GST liability is reported to the Australian Taxation Office (ATO) on either a
monthly or a quarterly basis in the form of a Business Activity Statement (BAS).
GST calculation
It is easy to calculate GST when the cost of the individual goods/ service is known:
If GST is already added to goods/ services and individual costs are not known, it is necessary to divide the
total (the GST inclusive figure) by 11.
Subtotal $784.50
GST@10% $78.45
Complete the calculations for the following invoices. Show your subtotals and the totals.
1. Three x black coats at $106.00 each, 5 Jeans at $110.00, 1 x boots at $125.00. These are non GST
prices and GST is payable.
Subtotal
GST
Total payable
2. four hundred black gremlins at $55 each, 250 green gremlins at $33 each, 90 silver gremlins at $39
each. GST is payable.
Subtotal
GST
Total payable