Purchases with an expense and an income component on the same invoice

SusanMcC

I receive invoices that have an expense and an income component.  When I include the expense in the purchases and then on the same purchase invoice I process the income as a minus it puts the net amount in the purchases in the GST reports.  How do I get it to recognise the purchase amount in the purchase value column and total and the income amount in the Sales Value column and total.

SamaraM

Hi @SusanMcC 

Thank you for your post. 

The type of transaction determines where it will appear on the GST Report. For example, an invoice (receiving payments) transaction will result in a value in GST collected (Sales and Income), whereas a purchase (paying bills) transaction will result in a value in the GST Paid (Purchase and Expenses) section.

If you have a negative value on a transaction in reduces the GST value and doesn't transfer across to the other type. So in your situation where you are entering as a purchase, it will leave it on the GST paid section. 

 

If you wish to have it appear in the opposite of the GST scale, you should be entering the opposite type of transaction (So entering an invoice and purchase separately). This way the value should appear correctly in the GST reports. If that is not possible, you would be looking at recording a journal entry to correct that and I recommend speaking to an accountant in regards to that.

 

If you have any further questions, please let me know.

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