Goods return (Cash sale/purchase) causes Gross Sales error

If that was the case (false accounting records) then Manager would address it with priority.
However, nothing that you have illustrated has proven that Manager is creating false accounting records. What your commentary has shown is that you don’t understand or can’t distinguish the difference between Manager the Accounting Software and the Add-ons used for external purposes.

But first lets clearly debunk your false and misleading claim regarding the false accounting records.
Using your own data (per below), lets process it as both a Sales Invoice and Cash Receipt.
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Now if one drills down on the Tax Payable account you will clearly observe that both accounting transactions have been processed in EXACTLY the same manner.

Therefore, where within the Manager Accounting Software are these programme errors occurring which are generating “YOUR” claimed false accounting records ???

Your original issue has nothing to do with Manager the Accounting Software but with the Add-on feature of GST taxation reporting, which is external of the Accounting Software.

Now to simplify your original issue without all the bloated verbiage, you contend that the GST taxation reporting sub-totals being generated were incorrectly accumulating the source data. Furthermore, you hold this view because of the accounting processing of contra transactions.

However, what you haven’t grasped even though it been explained several times is that GST taxation reporting is NOT accounting reporting. Manager’s generated sub-totals complies with the requirements of GST taxation reporting.

To illustrate this with your phone purchase / refund example. Whilst the two transactions may result in an accounting contra, for GST taxation reporting they are not a contra but two stand alone transactions. Whenever you receive GST then it is a GST Sale, regardless of the GST being received via a refund or selling to a third party. Any GST received can’t be a negative GST Purchase.

The basis behind the GST transaction is not relevant to the tax authorities. Their sole focus is the collection of GST. This is different to Income Tax reporting.

As always, if you can provide official documentation to the contrary then please submit it.
It is noted that all previous requests have resulted in your failure to provide such.
You need to note that your personal perspective alone is not going to have any validity.