Issued a refund cheque from the Adjustment Note but the tax amount is still showing credit

Kerrie H

We raised an adjustment note for a part refund for a customer ($1,200), which has a gst amount of $109.09.  We then issued a refund cheque from the adjustment note for the full amount ($1,200), however this customer is still showing a credit available of $109.09.  Why hasn't this cleared?  

gazza73

Kerrie


First thought is that the adjustment note was not set to be a GST line so the entire 12000 adjustment was gross/nett of gst (ie: no gst at all).?  That could explain the outcome,  but if you're convinced that there is redcing amount of $109.90 in the GST payable liability account as a result of the adjustment note, then this becomes curious.  Can you check the gst/fre status of he adjustment note?


Gary Pope
m: 0408994799 
An Accredited Partner- Consultant (VIC. Aust)
http://www.alchester.com.au/reckon-ac...
"Working with Accountants/Bookkeepers PPs/APs, as an
independent IT Professional and retired FCPA Accountant"

Sally McIntosh, Accredited Consultant

Hi Kerrie,

Have a look at the refund cheque itself.

In the line allocated to Accounts Receivable check to see if the GST/NCG tax code has been added.

The GST portion has already been dealt with in the Adjustment Note, so shouldn't be in the cheque too.

That would clear out the correct balance as the amount less GST is now what has been allocated to Accounts Receivable.

Kind regards,

Sally McIntosh (sally@samsolutions.com.au)

Kerrie H

Thank you Sally, I had to delete the refund cheque and re-issue it to close it off.  All good now.

MM_7769277

Hi Sally,

I just went looking for the exact same problem and found this thread. Your solution worked for me too! You saved me a lot of hair tearing!

Regards
MM