Cash refund with a tax implication

Lynne_8946547

We have received a cash refund (not a credit) in our bank account which includes a GST amount.

I am trying to work out a way to record this in Reckon so that the tax is included in the Tax Liability Report (TLR)

If I use Banking/Make Deposits, I have to code the GST separately but this does not appear in the TLR.

Can anyone help please.

Thanks

Kellie Cockerell

Hi
I would add a credit under the supplier so can code correctly then add the payment in Make Deposits and code to Accounts Payable as a total then go into pay suppliers to match them up.

Graham Meredith_8157454

Hi Lynne

I am assuming it is a cash refund from an expense ??

If that is the case I would receive it as a Sales Receipt.

I would set up a Service Item in my Items List and code it to the expense account to which the cash refund relates.

It is effectively a refunded expense.

I hope this makes sense to you.

Lynne_8946547

I tried that, but because it is a credit it did not appear

Kwikbooks (Professional Partner)

Hi Lynne

you will need to do a jnl entry cr-bank / dr-expense account original debit came from.

If a refund for a supplier credit or overpayment use make deposit, Accounts Payable for account & make sure you use the supplier name, enter the amount of refund, for overpayment or refund of a credit note you will not need to enter gst it is already taken up with the credit note, for an overpayment of account there is no gst either.

Graham Meredith_8157454

Hi Lynne

OK yes you can do it but it is a bit of a complicated process and not easy to explain on this forum as a few steps.

Kris_Williams

I always do a journal entry if it’s not for a supplier

Lynne_8946547

Awesome, that worked. Thank you  

Acctd4

Hi Lynne

Enter a “Bill Credit” (with Items/Accounts & Tax Code(s) as per the original Purchase/Bill)

Then enter a Deposit (“Received from” the same Supplier) posting to your “Accounts Payable” account.  Enter/select as applicable for other columns including Memo in both Memo fields (eg “Credit Refund for  ..…”)

This places the “Deposit” in the Bills list in your Pay Bills window for you to apply the Credit against.

• Go to Pay Bills
• Tick the Deposit in the list
• Click on the “Set Credits” button (above “Payment Date”) & then “Done” to confirm in the allocation window
• Make the “Payment Date” as per the Refund received date then click on “Pay Selected Bills”

 

NB: Due to a long-term glitch, the Deposit won’t automatically show in your Supplier’s transactions as the payee name drops out on stand-alone Deposits.

To correct this, simply go to your Bank Account register & enter/select the Supplier name in the Payee column & save/record the transaction.

When you go back to your Supplier Centre, this Deposit will now show in their transaction list.

 

This process ensures the:

• GST credit is correctly accounted for

• actual refund received is recorded &

• existing credit is cleared

   

  Shaz Hughes Dip(Fin) ACQ NSW, MICB

  Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

  Accounted 4 Bookkeeping Services

  Ballajura, WA

  0422 886 003

  shazinoz2@bigpond.com

  www.accounted4bs.com

Jacqui Allen

and that's the correct proceedure

Lynne_8946547

Actually, after reviewing the trial balance, this amount was sitting in undeposited funds rather than the account I posted it to.  I have deleted the transaction and followed Shaz's procedure below which has put everything into the correct accounts.

Lynne_8946547

Thanks Shaz, I deleted the previous transaction I had posted and followed your procedure. Everything is now correct in the trial balance. Thanks again