how to process GST refund when credit note issued to our Business Portal ATO account (and NO money actually received into our bank account)

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  • Updated 4 years ago
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rose ivory

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Posted 4 years ago

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Hi Rose,  Did you get an answer to this question?  We have the same problem.
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John G, Information Support Analyst

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Hi Carrie,

Thanks for asking.

The "straightforward" way is to treat your GST refund at the ATO as an asset, so processing a General Journal with a Dr to a current asset account called "GST Refund at ATO" and a Cr to Tax Payable account.

However, that entry won't be included in any Tax Reports which only capture tax components from authorised transaction types.  Does it need to appear in any Tax Reports?  If it does then you'll need to do 2 transactions.  Firstly, go to Suppliers > Tax Activities  > Manage Tax > Receive Tax Refund and process the transaction through a Bank Clearing Account.  Then you'll need to do the General Journal to clear the Bank clearing Account to your current asset for "GST refund at ATO".

Hope this helps.