Reverse Charge Mechanism for Australia

[Former Member]

Hi All,

Greetings for the day!

would you all please guide me to configure the RCM (Reverse Charge Mechanism) for AU country.

The requirement is as below:

• a.Goods are procured from vendor outside Australia.

• b.The vendor does not apply GST as such we have to charge GST and pay the amount to the government.

• c.The accounting entry currently posted by the customer (before reverse mechanism) and post reverse mechanism is provided.

I expect a solution that will help in make the appropriate calculation and make a relevant posting as shown below

Vendor Invoice Video Conf Usage Dr Blue Jeans Network Cr GST Rev charge
New Temp adv OIM Dr New Temp adv OIM Cr Output tax GST Cr Exp add Video Conf Usage Dr New Temp adv OIM Cr After Reverse Charge Mechanism Video Conf Usage Dr Output GST Cr Blue Jeans Network Cr

I did check all relevant links and comments, however those are not clear guidance to me to proceed with. I am expecting clear configuration steps to fulfill my requirement. Thank you in advance.

Regards,

Siva Reddy