Cash refund with a tax implication

Lynne_8946547
Lynne_8946547 Member Posts: 93 ✭✭
We have received a cash refund (not a credit) in our bank account which includes a GST amount.

I am trying to work out a way to record this in Reckon so that the tax is included in the Tax Liability Report (TLR)

If I use Banking/Make Deposits, I have to code the GST separately but this does not appear in the TLR.

Can anyone help please.

Thanks

Comments

  • Kellie Cockerell
    Kellie Cockerell Member Posts: 25
    edited October 2019
    Hi
    I would add a credit under the supplier so can code correctly then add the payment in Make Deposits and code to Accounts Payable as a total then go into pay suppliers to match them up.
  • Graham Meredith_8157454
    Graham Meredith_8157454 Member Posts: 50
    edited October 2019
    Hi Lynne

    I am assuming it is a cash refund from an expense ??

    If that is the case I would receive it as a Sales Receipt.

    I would set up a Service Item in my Items List and code it to the expense account to which the cash refund relates.

    It is effectively a refunded expense.

    I hope this makes sense to you.
  • Lynne_8946547
    Lynne_8946547 Member Posts: 93 ✭✭
    edited October 2019
    I tried that, but because it is a credit it did not appear
  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
    Hi Lynne

    you will need to do a jnl entry cr-bank / dr-expense account original debit came from.

    If a refund for a supplier credit or overpayment use make deposit, Accounts Payable for account & make sure you use the supplier name, enter the amount of refund, for overpayment or refund of a credit note you will not need to enter gst it is already taken up with the credit note, for an overpayment of account there is no gst either.
  • Graham Meredith_8157454
    Graham Meredith_8157454 Member Posts: 50
    edited October 2019
    Hi Lynne

    OK yes you can do it but it is a bit of a complicated process and not easy to explain on this forum as a few steps.
  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
    I always do a journal entry if it’s not for a supplier
  • Lynne_8946547
    Lynne_8946547 Member Posts: 93 ✭✭
    edited October 2019
    Awesome, that worked. Thank you :) 
  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited October 2019

    Hi Lynne


    Enter a “Bill Credit” (with Items/Accounts & Tax Code(s) as per the original Purchase/Bill)

    Then enter a Deposit (“Received from” the same Supplier) posting to your “Accounts Payable” account.  Enter/select as applicable for other columns including Memo in both Memo fields (eg “Credit Refund for  ..…”)

    This places the “Deposit” in the Bills list in your Pay Bills window for you to apply the Credit against.

    • Go to Pay Bills
    • Tick the Deposit in the list
    • Click on the “Set Credits” button (above “Payment Date”) & then “Done” to confirm in the allocation window
    • Make the “Payment Date” as per the Refund received date then click on “Pay Selected Bills

     

    NB: Due to a long-term glitch, the Deposit won’t automatically show in your Supplier’s transactions as the payee name drops out on stand-alone Deposits.

    To correct this, simply go to your Bank Account register & enter/select the Supplier name in the Payee column & save/record the transaction.

    When you go back to your Supplier Centre, this Deposit will now show in their transaction list.

     

    This process ensures the:

    • GST credit is correctly accounted for

    • actual refund received is recorded &

    • existing credit is cleared

       

      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

      shazinoz2@bigpond.com

      www.accounted4bs.com


    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

    shaz@accounted4.com.au

    https://accounted4.com.au

    (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!)
  • Jacqui Allen
    Jacqui Allen Member Posts: 238 ✭✭
    edited October 2019
    and that's the correct proceedure
  • Lynne_8946547
    Lynne_8946547 Member Posts: 93 ✭✭
    edited October 2019
    Actually, after reviewing the trial balance, this amount was sitting in undeposited funds rather than the account I posted it to.  I have deleted the transaction and followed Shaz's procedure below which has put everything into the correct accounts.
  • Lynne_8946547
    Lynne_8946547 Member Posts: 93 ✭✭
    edited October 2019
    Thanks Shaz, I deleted the previous transaction I had posted and followed your procedure. Everything is now correct in the trial balance. Thanks again