Sales figure in reports not matching profit and loss

jennifer6

Hi, I am really hoping someone could explain this to me as I am not sure if this has been done correctly.

 

We have been doing a simplified version of just spending and receiving money.

 

When we receive money in from the sales we would dr bank and cr sales income.

When someone returns the sales or money bounced bank, it would be cr bank dr sales income.

 

For instance, I have a total sales of $50,000 and sales income bounced back totally $4,000.

When I run my GST report it will shows a total sales of $50,000 but in my profit and loss, it shows $46,000. (which is basically the adjustment of cr bank and dr sales income.)

 

However, this sales figure in the GST report is not reflecting the returns of $4,000 and everytime I am to lodge the BAS I need to manually deduct the $4,000 from the GST report.

 

Anybody could advise on a better and correct way of accounting it? As mentioned, I am only using spend money and receive money so no invoice or sales return,etc.

 

Many thanks.

Tracey_H

Hi @jennifer6 

 

How are you recording that bounced back amount, as a negative Receive Money or a Spend Money? As the type of transaction will determine where it appears on the GST reports, if you are recording it as a Spend Money transaction it will be appearing in the Purchase Value column in the GST summary report. 

 

If you are recording it as a negative Receive Money transaction it should be reducing the Sale Value figure in the GST summary report.

 

Please do let me know if you need further assistance with this.

 

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