This article is Step 4I of Understanding Accounting Integration - Control Accounts > Stamp Duty Clearing
To see all the steps of Understanding Accounting Integration, please review - Overview - Understanding Accounting Integration
Step 4I - Control Accounts - Stamp Duty Clearing
Stamp Duty Clearing General Ledger is required for our Australian Dealers
- This General Ledger Account is used as a clearing account for the stamp duty charged on Customer Orders > Unit Deals and the account type is typically set up as a Current Liability and usually maintains a credit balance
- It will allow the Dealership at any time to look at this liability account and know how much they have collected from Customers and will need to be remitted to the relevant State Authority (when required)
- Stamp duty is charged at a rate determined by the State in which the vehicle will be registered and the rate is added in Blackpurl System settings > Settings and Controls - Price settings
It is set a % and this will calculate the Stamp Duty on each Customer Order > Unit Deal
- When the Customer Order > Unit Deal is invoiced to the Customer, an entry will go into the Stamp Duty Clearing General Ledger for the amount of Stamp Duty that the Customer paid on the Unit Deal
In our example below, Mr Brown was invoiced for $711 as Stamp Duty on his Unit Deal and it will show up in the Stamp Duty Clearing General Ledger as:
- When the Dealership has to pay the relevant State Authority for Mr Brown's Stamp Duty, the Dealership would allocate the payment from their accounting package to this Stamp Duty Clearing General Ledger Account
- As you can see once the Stamp Duty has been paid to the State Authority it is also the clearing entry
- The dealership may wish to use the same clearing account for registrations payable by the Customer and also charged on the Customer Order > Unit