Tax coding for supplier refund interest received
We received a refund from our insurance company for overpaid premiums, which also included interest they paid us because of the overpayment.
I entered these as a Supplier Credit so that I could code them to the original expense accounts, then made a Deposit entry against Accounts Payable to clear this credit and finalise the transaction as a deposit into our bank account. This all worked fine.
For the Interest they paid us, I entered this in the same Supplier Credit against our "Interest Received" income account, with an INP tax code. I have just noticed that this interest is now showing up in our Tax Summary Report in the Purchases section with an INP-P code, which I believe is what happens when a sales tax code is used in an purchases transaction.
Does anyone have an idea how this transaction should be done so that the tax coding stays correct, and the entire deposit still stays altogether as one? Or should I just ignore this? I am using Reckon Accounts Premier Desktop 2021.
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