Tax Detail Report (Cash Net) not match The Tax Liability and Tax Summary Reports.

Legacy KB ID: 474

Question

Why doesn’t the Tax Detail Report (Cash Net) not match The Tax Liability and Tax Summary Reports. The BAS Report is correct.

Answer

This problem will occur where:

·         Negative amounts have been included on Invoices/Sales Receipts that have used an item type other than Discount.

·         There has been a part-payment of an invoice

Solution:

When you need to reduce the amount of an Invoice

(e.g. for the costs incurred by an agent in selling your goods to a 3rd party)

1.    Create the reducing item as a Discount item, linked to your appropriate account.

To create a Discount Item to reduce the proceeds of a sale:

          Lists > Item List > New > Discount

          Set the Account to the appropriate expense account.

          Set the tax code to GST.

2.    Replace the negative item with the newly created Discount-type item

3.    If the reducing item must have a purchase side tax code, then you will need to enter income and expense items separately.  We suggest the following steps:

a.    Enter the income transactions on a Sales Receipt and deposit the funds to a Bank Clearing Account

b.    Enter the expense transactions on a Write Cheque and pay from the Bank Clearing Account

c.    Transfer funds from the Bank Clearing Account to your standard Bank Account to ensure your QuickBooks entries will match your Bank Statement.

Where a Part-Payment of an Invoice is involved

QuickBooks cannot report part-payments on a Cash basis properly – the full tax component is listed on all part-payments.  (When listed on an Accrual basis there should be no errors).

The correct reports to compare on a Cash basis to verify that tax treatments are correct are the Tax Summary and Tax Liability Reports.  Provided this match and correspond with the BAS, and you have part-payments in the period, then you can accept that tax reporting is correct. 

Need more help?

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Or Log a Support Ticket: https://www.reckon.com/au/support/