Start a Post

Cash Back Bonus/Promotion from a Purchase - GST code?

Highlighted
Contributing Cover User KimAccPay
8 Posts
Contributing Cover User
Australia
Solved: Go to Solution

Cash Back Bonus/Promotion from a Purchase - GST code?

We purchased an Air conditioner for the office, which included a 'Cash Back Bonus'
We received the Cash Back Bonus months after the initial purchase.

 

I assume I'd record it under 'Receive Money' but I don't know what Tax Code I should use?
Is GST included on a Cash Back Bonus from a purchase?

 

Any help would be much appreciated.

4 REPLIES
Super Partner TallBooks
229 Posts
Super Partner
Australia

Re: Cash Back Bonus/Promotion from a Purchase - GST code?

Hi @KimAccPay

There should be a 'discounts received' account you can use, otherwise you can receive it as an income amount with GST to the original expense account used for the purchase to offset the total.

Kind Regards

Samuel Burmeister
Tall Books - Certified MYOB Partner
Training, Set-up & Small Business Bookkeeping
info@tallbooks.com.au
www.tallbooks.com.au
Ultimate Partner Seattle
1,104 Posts
Ultimate Partner
Australia
Accepted Solution Solved Solution

Re: Cash Back Bonus/Promotion from a Purchase - GST code?

@KimAccPay @TallBooks

 

Interesting question.

 

Normally the cash back is not of a substantial amount.

Lets say the air conditioner cost $3000 and the cash back was $200.

 

I would use the same ledger and the same GST code as the original transaction.

 

Let us know your thoughts.

 

Duncan

Duncan Smith
Business Advice + Tax
www.businessadviceplustax.com.au
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
Contributing Cover User KimAccPay
8 Posts
Contributing Cover User
Australia

Re: Cash Back Bonus/Promotion from a Purchase - GST code?

Thank you!

I had originally put it back into the same account with the same GST coding! I just didn't know if that was too easy or if there was a more complicated way to do it, so I guess I'll leave it like that!
Thanks for taking the time to respond.

Contributing Cover User KimAccPay
8 Posts
Contributing Cover User
Australia

Re: Cash Back Bonus/Promotion from a Purchase - GST code?

Yes, exactly! I had originally put it back into the same account with the same GST coding! So I guess I'll leave it like that then!
Thank you for taking the time to respond! 

Didn't find your answer here?
Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post