When you record an expense, you tell OneBookPlus whether the amount you typed already includes GST.
The two modes
GST inclusive. The figure you typed is what you actually paid, and GST is inside it. OneBookPlus works the GST out with the ATO rule of dividing by eleven, and stores the rest as the expense.
GST exclusive. The figure you typed is the cost before tax, and GST is added on top.
Either way the total ends up exactly what you typed for inclusive, or the typed amount plus GST for exclusive. Nothing is silently re-based behind your back.
Why it matters
Your BAS claims GST paid on purchases. That figure comes off these expenses. If a GST-inclusive receipt is recorded as exclusive, you claim more GST than you paid, and your expense figure is overstated by the same amount, which understates your profit.
When there is no GST to claim
Not everything carries GST. Bank fees, most residential rent, and any supplier who is not registered for GST are common ones. If GST was not charged, do not record any.
The check is simple: if the receipt does not say GST anywhere, and the supplier has no ABN on it, there is almost certainly no GST to claim.
Behind the scenes
An approved expense posts a journal that debits the expense account and the GST paid account, and credits either accounts payable or the bank. That is the entry your BAS and your profit and loss both read, which is why the inclusive setting has to be right at the point you type it.
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