You are probably already aware of this, so I’m sorry if I am repeating. I searched for other topics and I found one where Lubos suggested 2 alternatives to recording a refund:
- as a negative ‘payment’ transaction or
- as a debit note.
I have also read the ‘use debit notes for supplier returns and refunds’ guide.
I recorded 2 refunds as negative ‘payments’, but when I ran the Tax Summary report for the quarter, I noticed that total sales in the report was different to what it should be. When I drilled down I saw that the income figure had included the negative ‘payment’ transactions.
Is there a way that you can fix this issue? Or is it that the negative ‘payment’ option should not be used?
- I had a payment to a supplier that was offering Buy 3 and get the 4th free.
I entered each line exactly how it was on the invoice (ie with a negative spend money line included in the transaction).
Line 1: $325 x 2 = $650
Line 2: $428 x 2 = $856
Line 3: Buy 3 get the 4th free $325 x 1 = -$325
I realise that to workaround this issue, I could just alter line 1 to be 1 x $325. But wanted to report this issue, because if people are relying on the tax summary report to lodge their BAS, there is the potential for errors in the data.
Paid for Insurance with Company A for one year $1,000
Swapped to Company B before the full year was up.
Received refund from Company A for $300.
First I entered this as a ‘receipt’ - which came up as sales invoice income in the Tax Summary report. Then changed it to a negative ‘payment’ which also shows as sales invoice income.
So is the solution to use a debit note for both of these situations?
And do I understand correctly, that if I create a debit note, I also need to record the money-in as a receipt - allocating the refund to Accounts Payable and the Supplier’s sub-account.
Thank you so much for your generous help.