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?
The only way to work around it in Manager is to open the suppler tab and open the Debit note tab and enter the return way.
An easier way is to give up on Managers abilities to correctly maintain accounting records, create the custom report it the first link above and manually correct the accounting records prior to submission.
It is not a bug. The program works as designed. @Patch happens to disagree with the fact that returns are categorized as sales on the report. The fact remains that a return is indistinguishable from a sale from a taxation perspective.
It works just as you would expect it to except you tax summary will show you are now a phone retailer. Your sales have increase by 100.60 rather than your purchases decreasing by 100.60.
If you enter the same physical transaction into Manager as a debit note your purchases will decrease by 100.60 and your sales will remain then same. Alternatively you can add in some more payments or receipts with negative values or Journal entries using tax codes and Manger will report arbitrarily large sales and purchases.
Manager not being able to reliably calculate you actual total sales or purchases is a bit of an issue if your tax department ask you to report either, and has penalties for submitting incorrect information.
Doesn’t really make any difference if you happen to live in a country where your tax department only asks you to report the difference in sales and purchases, or doesn’t really care what numbers you submit.
You are not doing anything wrong. What needs to be understood is that GST Sales / Purchases are NOT the same thing as Accounting Income / Expenses
GST Sales are when you receive GST and GST Purchases are when you pay GST.
For example - if you sell a fixed asset which includes GST, then that is a GST Sale but it is not an Income Sale. Same when you purchase Inventory stock, that is a GST Purchase but it is not an Expense Purchase.
@Patch claims of “Managers abilities to correctly maintain accounting records” and “Managers accounting errors” are false and misleading and which are being addressed separately.
