Stock on Floorplan
When a vehicle is purchased from an ABN holder and put on floorplan it will post the GST paid and GST collected of the same amount, resulting in $0 of GST owed overall. We can see this in the below example where a vehicle has been brought in for $22,000, $2000 has posted to GST paid and $2000 has posted to GST collected. (Please note, how GST is collected may vary for markets outside of Australia).
Example 1
In the Vehicle franchises within system options there is also a setting which will change how certain floorplan purchases will appear on your BAS report. If the highlighted setting is:
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Ticked will post the same as Example 1 above
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Un-ticked will post the same as Example 2 below
Franchise settings
Example 2
BAS report example
In the BAS report we can then see how these will show through. With the $22,000 from the first example (highlighted yellow) it shows as a sale in G1 and a purchase in G11. While for the second example (highlighted blue) where the franchise tickbox was unticked it shows as a $27,500, and ($27,500) purchase in G11. Overall, all both of these have a $0 net effect on GST as they increase and decrease by the same amount.
