GST

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Hi new to Reckon One, but have been using Reckon Hosted for a few years.  When checking my GST collect and paid and can not see GST from Customer adjustment notes included in either of these amount and my past BAS does not equal I think because of this.  Am I entering the adjustment note wrong, would appreciate help please. Thanks
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Jodie

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Posted 1 year ago

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John G, Information Support Analyst

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Hi Jodie,

Thanks for asking.

Did you include a tax code on the Adjustment note?
Was the Adjustment Note issued in the same reporting period as the original invoice?


regards,
John.
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Jodie

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Yes to both questions John, I first had tax code as GST and saw no difference so I changed it to AJS and nothing.  I did notice that when I change to accrual they show up but not when cash which is different to when I used hosted as they showed up with cash.  Also if I change to accrual it is even more of a difference to what my report is meant to be :( 
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John G, Information Support Analyst

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Hi Jodie,

It sounds like the original Invoice and the Adjustment Note were paid in different reporting periods.  Accrual will use the transaction date; Cash uses the payment date.

regards,
John
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Jodie

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ok, that sounds possible but why then would reckon hosted when on cash show it but Reckon one when on cash not show it (dates where entered same in both systems).  Also if i put report dates for a whole year not one negative figure (adjustments) shows up.  Information to know is my gst on adjustment is more then gst on invoice and yes it is meant to be..
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Jodie

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Another example is bill for $200 (gst - $20) discount solar $100 (gst - $0) pay $100 only $10 gst shows up when there was no gst taken. hosted would show $20 gst reckon one only shows $10.  This is not an actually bill amounts just an example.
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Jodie

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ok, still no closer to solving this problem.  What is the next step please? call support?
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John G, Information Support Analyst

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Hello Jodie,

Yes, please call support and work through the issues one to one with a technician.


regards,
John
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Jodie

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Hi John,
              would you have any other suggestions, as I have contact support and person is having trouble understand what I am trying to explain to him and have been communicating back and forth for the last month and he is still not getting what I am trying to tell him the problem is.  Could you maybe help me with the wording so he can understand what my actual issue is as he thinks I am trying to get my accrual and cash reports to be the same for some reason.
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Qwerty

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20/08/17

Hi Jodie,

The tax portion of an invoice increases the balance of GST Collected
The tax portion of a customer adjustment note decreases the balance of GST Collected

Regarding your bill example (warning it’s a lengthy reply)
Gross $220
Tax $20
Net $200

Case 1 – discount applied to gross & tax calculated on the new gross amount
Discount: $100 ($220 – $100 = $120)
Gross (after discount): $120
Tax (after discount): $10.91
Net (after discount): $109.09

Case 2 – discount applied to net & tax calculated on the new net amount
Discount: $100 ($200 – $100 = $100)
Net (after discount): $100
Tax: (after discount) $10
Gross: (after discount) $110

Case 3 – discount applied but you want the tax calculation to be based off the pre-discount transaction total instead of being calculated on the post-discount transaction total

Note: I’m using net amounts for this example
Discount $100 ($200 – $100 = $100)
Net (after discount): $100
Tax (after discount): $20
Gross (after discount): $120


Just a few things to note before continuing. 

#1
The tax settings area in R1 has thew following settings:
a) Allow users to edit tax amounts (enabling this allows you to override the default tax amounts in transaction forms)
b) Allow user to choose if amounts in include tax (enabling this allows you to toggle transaction forms between using net & gross amounts)

To access these options, click the Administration menu (cog icon top right) > Settings > Tax settings > General.

#2
The invoice form has two ways to set a discount

Global discount
 
If you are using a gross invoice form, the global discount is applied to the gross total. Tax amounts are then calculated off the new gross total after the discount. 

If you are using a net invoice form, the global discount is applied to the net total. Tax amounts are then calculated off the new net total after the discount.

When using a global discount, the discount shows in the totals section (below subtotal) in the bottom right section of the invoice. 

A gross invoice form has a gross subtotal, the global discount is applied to the gross sub total.
A net invoice form has a net subtotal, the global discount is applied to the net sub total


Row discount 

You can only use a row discount for invoice lines that use an item. The row discount cannot be used for invoice lines using an account.
Row discounts are not reported in the discount section of the invoice totals (explained below)

The sub total amount shown in the invoice totals section uses the invoice line totals. A line discount updates the line total hence the subtotal already includes the row discount & the row discount isn't shown in discount section of the invoice totals.
A global discount is different in that it doesn’t update the line totals. It is applied against the subtotal hence why it’s shown in the totals section separately to reduce the subtotal.

Case 1 in R1
1. Set the invoice to gross basis
2. Enter the discount (when using the gross basis form the discount is a gross discount)
3. Enter the invoice line amount (e.g. $220 as you are using a gross form)


Case 2 in R1
1. Set the invoice to net basis
2. Enter the discount (when using the net basis form the discount is a net discount)
3. Enter the invoice line amount (e.g. $200 as you are using a net form)


Case 3 in R1
1. Set the invoice to net basis
2. The line needs to be using an item not an account to utilise the row discount option
3. Enter the invoice amount (e.g. $200 as you are using a net form) 
4. Enter the row discount ($100) 
5. Tax will default to $10 as the tax code is set to calculate 10%. You will need to override the tax amount if you want to use a custom tax amount. Update the tax from $10 to $20
(Edited)
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Qwerty

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20/08/17

Can you please elaborate in a bit more detail regarding your BAS issue and/or cash vs accrual issue.

Perhaps use a simple scenario with 1 or two transactions so that I can follow and try to replicate.
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Qwerty

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24/08/17

Hi Jodie,

I noticed you had another thread open regarding your cash basis / tax issue. I've added my input to that thread.
https://community.reckon.com/reckon/topics/adjustments-not-showing-in-tax-cash-mode
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Janine Beech

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Hi 

I recently came across the same problem in Reckon Accounts Hosted.  I solved it by applying the credit note to the invoice.  The problem won't show up in the accrual system because both the invoice and credit note is recognised when raised.  In the cash system, a "payment" needs to be received.  Allocating the credit note works as a payment.