recording a tax payable adjustment

Julie Dinsdale
Julie Dinsdale Member Posts: 15 Reckoner Reckoner
edited August 2020 in Accounts Hosted
Hello everyone,

After taking over from a lady, I had to put two amended activity statements in. We received a refund into our bank account from the ATO. I put in a credit against the ATO, supplier, to the Tax Payable Liability account. I then did a 'record deposit' against the accounts payable account, against the ATO. When running a balance sheet and checking the Tax Payable Liabilty account, it has credited it, therefore shows an increase in the Tax Payable account. I did it to be a decrease, not an increase.

Can anyone help please.

Kindest regards Jules

Comments

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,781 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited August 2020

    Hi Jules


    It feels incorrect – “increasing” the liability – but what it’s actually doing is reversing the original overpayment eg:


    Correct GST Payable        $ 1,000

    BAS/Amt Paid                    $ 1,100   

    Refund Due on Revision   $     100



    Originally, the GST payment would have overpaid the GST liability account by $ 100 (effectively making it a negative balance)

    The increase (caused by the refund deposit) simply brings that back into line (to $ 0.00)


    Personally, I don’t like using Bills & Bill Credits for ATO liabilities because the liability is already accumulated in the accounts.  I would just enter the Deposit.

    (NB: Due to a long-term program 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 “Australian Taxation Office” Supplier name in the Payee column & save/record the transaction.

    When you go back to your Supplier Centre, this Deposit will now show in the ATO’s transaction list)

     


    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


    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

    shaz@accounted4.com.au

    https://accounted4.com.au

    (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!)