Adjust GST error in previous BAS

DebA

Hi

We paid in invoice of $3,300.00 to a supplier which incl GST (in July 2020). Since then, we've been advised there was an error & invoice should not have incl GST. The supplier has issued us with an updated invoice (no GST). So the supplier will refund us $300 to our account.

I believe we now have adjust our BAS (April - June 2021) to reduce the GST we are claiming by $300.

Can anyone tell me the easiest way to do this? Do we just manually adjust the amount of GST we are claiming back in BAS this quarter (reduce by $300)? Should we just credit the refund (from supplier) to GST account code?

Appreciate any suggestions about BAS and Reckon entries.

Thanks

Debbie

Acctd4

Reckon Accounts/Hosted determine the BAS figures (& what gets reported where) specifically via tax codes & therefore you will need to use the NCG tax code to reflect this GST component refunded. This of course is not possible in the Make Deposit screen itself & so it is necessary to enter this in a couple of steps to ensure everything is reporting correctly:

Create a Bill Credit using the same account(s) as the original Supplier Bill

• Ensuring the Amounts include tax checkbox at the bottom is unticked, enter "3000" with the NCG tax code - This creates the $ 300 GST credit to be refunded.
• On the second line, to the same account, enter "-3000" (eg negative) with the NCF tax code - This "removes" the net amount from the transaction leaving just the GST component total.
• Ensure you enter appropriate Memos (on all Memo lines as some appear in some reports & others in others!) so that you or anyone else can clearly identify what's being reflected here.

This credit will now be sitting in Pay Bills but it needs a positive entry to be visible in the Bills list to allocate.

Upon receipt of the refund from the Supplier, go to Make Deposits & enter the refund amount, ensuring you post to your Accounts Payable account - Posting to this account ensures this transaction will then show in your Pay Bills list. Again, don't forget to enter Memos:

TIP: Annoyingly, a stand-alone Deposit drops out the Payee Name preventing it from showing in the Payee's transaction list or the Bank Account Register. However, if you go to your Register & select/add the Payee again there the save, this will resolve that issue:

Now, go to your Pay Bills window & allocate the Credit against the Refund Deposit entry:

Click on Done to apply & then Pay Selected Bills to save/update.

When you view your Supplier's transactions, you will now be able to see both the Credit entry AND the Refund Deposit in the list:

Your GST/BAS figures are now also reporting correctly too:

Acctd4

Hi Debbie

The bank account you deposit it into (eg the very first field at the top in the Deposit window) should be whichever account the Supplier actually pays it into in order for your Bank Reconciliation to match up! This would normally be your main bank account ☺️

DebA

Wow, thank you for a really detailed but easy to understand explanation. that's great! Will give it a go.

DebA

HI Shaz,

Two questions:

1 We pay BAS from a 'working account'. However we paid the original invoice out of another account. Does it matter which which account the supplier puts the money back in? Should we get them to put back into our 'working account" or the account the which paid the original invoice.

2 Does this mean we don't have to manually adjust the BAS? ie. once we do the entries suggested above, we do new BAS reports & it all works out ok. is that right?

thanks so much for your help.

Debbie

DebA

HI Shaz

sorry, just ignore my 2nd question. I can see that the GST/BAS reports will work out ok once I do the entries you suggested.