Incorrect tax code used on AR invoices
Hi,
I have used the incorrect tax code on an invoice in September and need to complete a GJ entry in October to adjust.
I thought the income was exempt from GST but have picked up it isn't?
CR Income $55,000.00
DR Income $55,000.00 GST
Is this correct?
Wendy Barnes
Answers
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Hi Wendy
Is your GST (BAS) on a Cash or Accrual basis ? If on Cash, you won't be reporting this transaction until it's paid so just edit the invoice to the correct tax code.
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No, it is on an Accrual basis Shaz.
Wendy Barnes
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A GJ will be more fiddly as you'll need to first credit the original so rather than doing a GJ, personally I would create - & allocate - an Adjustment Note (using exactly the same Item & tax code) to credit the original invoice then create the Tax Invoice again - dated in October - with the correct tax code 😊
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Thanks Shaz but would the adjustment be dated in September even though the BAS is closed or dated in October?
Wendy Barnes
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Yes, both transactions (Adj Note & new Tax Inv) would be dated in October ☺️
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Thanks Shaz and I did email you to see if you could help me with checking over our Reckon file including tax and superannuation but didn't hear back.
Is this something you could do for me?
Wendy Barnes
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Apologies Wendy - Yes, I can definitely help you with that ☺️
I'm out on site at the moment but will see & reply to your email tonight once I'm back home.
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Hi Wendy
Can I get you to check the email address you entered as your email’s not come through to me as yet ? 🤔
Should be: shaz@accounted4.com.au
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