due to covid and my shop being closed for 72 days I got a refund of my shop insurance company. How

David Hocken
David Hocken Member Posts: 3 Novice Member Novice Member
edited June 19 in Accounts Hosted

Comments

  • Kris_Williams
    Kris_Williams Member Posts: 4,277 Reckon Hall of Famer Reckon Hall of Famer
    edited June 2020
    You can do a journal crediting insurance expense account, using NCG, and debiting the bank account  Or you can do a sales receipt with an item connected to the expense account. Just remember there was GST when you paid it so there has to be GST when you get the refund
  • Zappy
    Zappy Accredited Partner Posts: 5,252 Accredited Partner Accredited Partner
    edited June 2020
    Dave Hi

    Dont do a journal. You don't need to. Enter a bill credit and post it to insurance and refund it to the bank. On the top line of the bill credit you simple add Insurance. On the second line of the bill dredit, you put the bank account. Theres never any need to use journals for these entries and it messes up your GST reporting. 

    Kevin +61407744914

  • Kris_Williams
    Kris_Williams Member Posts: 4,277 Reckon Hall of Famer Reckon Hall of Famer
    edited June 2020
    Horses for courses, whatever makes sense to the user. I do journals all the time and balance my tax payable account after every BAS with no problem. Have done so for 20 years
  • Zappy
    Zappy Accredited Partner Posts: 5,252 Accredited Partner Accredited Partner
    edited June 2020
    Yes that's all well and fine but not all of us have a Cert IV in financial services or like I, a commerce degree. Pretty sure the GST hasn't been in for 20 years. It only started on 1 July 2000 Not sure about horses. I live in the city.
  • Bruce
    Bruce Member Posts: 447 Professional Partner Professional Partner
    edited June 2020
    Either a journal or a credit will work, I've used both successfully over the years.

    In relation to the GST the transaction may be a little more complicated than either Kevin or Kris has alluded to.   This is because if there was stamp duty in the original invoice invoice this also needs to be recognised in the refund.
    - part of the amount credited to "insurance" should have the NCG code,
    - however the stamp duty element of the amount credit to "insurance" not NOT have the NCG code.
  • Kris_Williams
    Kris_Williams Member Posts: 4,277 Reckon Hall of Famer Reckon Hall of Famer
    edited June 2020
    Yes I totally agree, I do factor that in but didn’t want to complicate things, especially as it’s probably a small credit. 
  • Kris_Williams
    Kris_Williams Member Posts: 4,277 Reckon Hall of Famer Reckon Hall of Famer
    edited June 2020
    20 years in 12 days
  • Zappy
    Zappy Accredited Partner Posts: 5,252 Accredited Partner Accredited Partner
    edited June 2020
    Very amusing Kris
  • Zappy
    Zappy Accredited Partner Posts: 5,252 Accredited Partner Accredited Partner
    edited June 2020
    Precisely why i would use the bill credit Bruce. The journal just isn't necessary and it complicates things.
  • Zappy
    Zappy Accredited Partner Posts: 5,252 Accredited Partner Accredited Partner
    edited June 2020
    Dave if you go to the Bill function there's a radio button to switch it to credit.
This discussion has been closed.

Categories