How do I enter bank transaction fees, interest income on bank balance and withholding tax on interes

Philip Hirschberg
Philip Hirschberg Member Posts: 3
edited October 2017 in Accounts Hosted
How do I enter bank transaction fees, interest income on bank balance and withholding tax on interest income in Reckon Accounts Hosted Premium?

Comments

  • Sally McIntosh, Accredited Consultant
    Sally McIntosh, Accredited Consultant Accredited Partner Posts: 475
    edited February 2017

    Hi Philip,

    To enter transaction fees I would write a cheque from the bank account so you can pick up the relevant tax code. (banking drop down menu)

    To enter interest income I would create a journal entry so you can pick up the relevant tax code. (company drop down menu)

    To enter the withholding tax I would also create a journal entry.

    I hope this helps.

    Kind regards,

    Sally McIntosh ([email protected])

  • Kevin Silberberg
    Kevin Silberberg Member Posts: 50
    edited September 2018
    I agree broadly with Sally's advice.  To be more specific in relation to the journal entries, to record interest received, Debit Bank for the amount received at the bank, Credit an Interest Income account for the total interest paid including the Tax withheld.and Debit the Tax Liability account in the amount of the Tax withheld.  For bank transaction fees I also use a journal: Credit Bank in the amount of the fee and Debit a Bank Fee expense account.
  • Philip Hirschberg
    Philip Hirschberg Member Posts: 3
    edited October 2014
    Thank you. Makes sense
  • Philip Hirschberg
    Philip Hirschberg Member Posts: 3
    edited October 2014
    I'm stuck on the tax withheld. As far as I understand, this is because I haven't given the bank our TFN, which I will sort out (one for another day!). Do I still Debit the Tax Payable liability account and Credit the Bank account?
  • Mirko
    Mirko Alumni Posts: 1,360 ✭✭
    edited November 2015
    Hey Phil, having worked for a bank prior, I know if it is in the same financial year they should be able to re-credit the amount back to you. Don't know if that would affect how you input that into your books (not an accountant/bookkeeper/tax professional). ^Mirko
  • LisaD
    LisaD Member Posts: 9
    edited February 2017

    Hi Mirko/Kevin/Sally

    Does using the 'write cheque' function as advised by Kevin and Sally require the set up of the bank as a creditor to enable processing of monthly bank fee?

  • Sally McIntosh, Accredited Consultant
    Sally McIntosh, Accredited Consultant Accredited Partner Posts: 475
    edited December 2016
    Hi Lisa,
    No not necessarily. You can set them up as a Supplier or even an Other Name type if you wish. But they do need to be in one of the names list so you can select their name in the Payee Field of the Write Cheque screen.
    Kind regards,
    Sally McIntosh ([email protected])
  • Peta
    Peta Member Posts: 14

    Hello, If I do a journal entry for interest received from the bank, I have placed the appropriate tax code only under the general ledger code/item "Interest Received" side not the "Bank" and now it shows up on my tax exception report. Is this correct? Or do I need to place the tax code on codes/items?

  • Acctd4
    Acctd4 Accredited Partner Posts: 1,917 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Yes, that’s fine - The bank account line shouldn’t be coded, only the income/expense line.

    Personally, I prefer to use a Sales Receipt for interest received & a Write Chq for interest paid - Keeps this uniform & easy to identify 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015) * ICB-Certified Bookkeeper * Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

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    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)