Accounts receivable credits - Reckon Hosted
There is no credit showing in Ageing Summary but if I run a Open Balance Report on the customer, it shows the balance there.
I have identified the cause of the discrepancy but I don't know how to fix it.
The adjustment relates to an invoice that includes a deduction for commission. When entering the adjustment, the sale has a 'GST' code and the Commission defaults to 'NCG' - (same as the original invoice). The credit balance is the GST component of the Commission entry.
I am happy to supply screenshots but not in an open forum.
Comments
-
You could try going to the adjustment note and tick amts include tax and change the amount to the net amount, it will still include GST but should agree with the total o/s1
-
Hi Linda
NCG is an expense tax code so should only be used on Bills/Cheques/Credit Card Charges.
If you use this Item on sales (sales receipts/invoices) as well as on purchases/expenses, you need to tick the checkbox on the Item to allow it to be used on both sides.
(The snip shown is for a Service Item - The checkbox wording differs depending on the Item Type you’re using but essentially, it allows the program to recognise it when used for sales/income V expense/cost)
Both your original invoice & the adjustment should have only the GST tax code on Items (including this Commission Item)
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
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
(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!)
2 -
Hi Linda - you have 2 options - 1. as there is GST on both the sale amount and the commission deduction - it should work provided you use GST as the tax code on both lines - but this will result in the commission being deducted from your total Sales on the Tax Summary report so your G1 will be less than it actually is (although that's not really the end of the world)... option 2 - is that you put the commission deduction in a Bill and here you can use the NCG tax code so it shows up as an expense... you will then need a bank account that you will call a name like Sales Suspense or similar - you will need to then Receive a payment to clear the full amount of the sale value to this suspense account, you will then need to do a Pay bills to clear the amount of the commission deduction to the suspense account - and then you need to transfer the net figure from the suspense account to the bank account to reflect the actual amount received from the customer... pretty long winded approach... but the more accurate one.. most people would go for Option 1 if they are not too concerned about what they report as total sales to the ATO... but if you mix the tax codes you will have the issues you describe....2
-
Thanks Kris, the check box was checked on the adjustment note and it does reduce the invoice to zero. However, the GST component still shows as an available credit in the background ????0
-
Thanks Shaz. I have changed the commission code to GST and it removed the credit! Success!!1
-
Thanks all for your comments and solutions. Option 1 of Linda Putland's response agrees with that from Shaz and was successful in clearing the credit.2
Categories
- All Categories
- 6.9K Accounts Hosted
- 11 📢 Reckon Accounts Hosted - Announcements
- 6K Reckon Accounts (Desktop)
- 3 📢 Reckon Accounts Desktop - Announcements
- 1.2K Reckon Payroll 🚀
- 21 📢 Reckon Payroll - Announcements
- 21 Reckon Payroll Help Videos 🎥
- 21 Reckon Mate App
- 3.1K Reckon One
- 7 📢 Reckon One - Announcements
- 11 Reckon Invoices App
- 14 Reckon Insights
- 114 Reckon API
- 830 Payroll Premier
- 326 Point of Sale
- 2K Personal Plus and Home & Business
- 74 About Reckon Community