There are various posts on the forum about refunds to customers and refunds from suppliers, however I am not sure how to account for a refund received for an overcharged bill.
I do not use Customers or Suppliers since, as a charity, I do not sell anything. I use Cash Basis accounting and pay my bills using the New Payment button. When I received a refund from my telephone company for being overcharged, I recorded it as a New Receipt against the same account as the original payment. Everything seemed fine until I produced my BAS Worksheet and say that it appears as a Sale, with corresponding GST. Is this correct or am I doing something wrong?