"non-income" items classified as "income" on GST Reports?

Question

Hi there&nbsp;A director borrowed an amount from the company.&nbsp;DR: Receivable (Director to repay): $1400&nbsp; &nbsp;&nbsp; &nbsp; CR:&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Cash at bank $1400 &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;The money was repaid: using the "receive money" feature on MYOB.&nbsp;DR: Cash at bank: $1400&nbsp; &nbsp; &nbsp;CR: Receivable (Director has repaid): $1400 &nbsp;&nbsp;&nbsp;However, on the GST reports, I still see an entry of the repayment of the director loan under "sales and income" under the N-T category.To me, this is not "income" but it is still reported as income under GST reports.&nbsp;&nbsp;&nbsp;The question:Is this correct?&nbsp;i.e. should money repaid be classified as income on GST reports?&nbsp;Any pointers would be much appreciated.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

julia_berkhout · Answer

Hi,
The N-T code is for transactions entered but not reported on your BAS.
The GST report shows all transactions by all GST codes including N-T.
This allows you to check all transactions that are coded to the N-T tax code are correctly allocated that way prior to lodging your BAS with the tax office.
Hope this makes sense now.
You can re-run your GST reports after you check all transactions and exclude the N-T code from the report using customise report options if it does bother you.&nbsp;

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