Grossed-Up Transactions

Grossed up transactions applies to receipt, payment, invoice, bill, adjustment note and expense claim. 

Definition

A grossed-up transaction is a transaction that has a resultant NET value comprised of a positive value line and a negative value line shown on a single transaction. 

Example: The Occupational Therapist

Liz is an occupational therapist working for herself as a sole trader. Rather than buy or rent her own premises and hire a receptionist, Liz works from an established clinic where the room and receptionist is provided. For the use of this room, the clinic owner deducts $22.00 from the fees paid by Liz's clients and remits the NET to Liz on a weekly basis.

+ $2,000 (revenue received from clients)

- $220 (service fee expense for 10 clients deducted by the clinic owner)

= $1,780 paid to Liz

For Liz to show this in Reckon One, she can now do the following on a sales receipt (Receive money):

Income: 2,000.00  |  Tax code: FRE  |  Tax amount: 0.00  |  Line total: 2,000.00

Service fee expense: - 200.00  |  Tax Code: NCG  |  Tax amount: -20.00  |  Line total: -220.00

Receipt total: 1,780.00

As part of the grossed up transaction enhancements, you can now do the following:

• Use a negative item rate or a negative account amount on transaction lines.
• Select purchase tax codes on a sales transaction or select sales tax codes on a purchase transaction.
• Select a ‘purchase only’ item on a sales transaction or select a ‘sales only’ item on a purchase transaction.

When using negative lines on an invoice, bill, adjustment note or expense claim transaction, the overall total is required to be a positive amount. Receipt and payment transactions can have either a positive or negative total.

When selecting a ‘purchase only’ item on a sales transaction or selecting a ‘sales only’ item on a purchase transaction, the line will default to using a negative item rate.

Need more help?

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