Gift Voucher sales from separate program
Morning all! Would like to pick your brains on the best way to account for Gift Vouchers, as I don't deal with them much at all. My client uses Kitomba and sells numberous of gift vouchers ea...
Forum Discussion
Unfortunately the accountant is not helping. My client has changed accountants and the way they were originally told by their old accountant to do the monthly journals, I feel is not correct.
I have access to the Kitomba Program now and have been able to look at things more in depth. The reports I have been supplied previously for each month, the previous Accountant instructed me to do the following journal entry only each month to account for the sale/redemption of Gift Vouchers:
Step 1. Calculate the GST exclusive amount of the unclaimed certificate as of 31/07/2022 from the report (example attached).
Step 2. Calculate the difference between the current balance in the balance sheet and the amount from Step 1.
Step 3. Record the amount in the manual journal
If the value of the certificate reduces, the variance will be recorded as a Debit.
If the value of the certificate increases, the variance will be recorded as Credit.
First Problem - the amount provided on the reports do not have GST in them as the program does not charge GST on the sale of GV at the time, I have double checked this in the sales reports/transactions on Kitomba. But previous accountant instructed me to calculate the GST component and use GST exclusive amount in my journals. I think the full amount on the report should have been used. Therefore Balance Sheet total is not a correct figure for Gift Vouchers Unclaimed account.
Eg reports - July total I used was $261964.46, not 288160.91)
Second Problem - all sales for each day via EFT etc have GST applied in the Xero rule, the Sale amount would include GV Sales, which should not have GST applied until redeemed. I don't see how the journals I was instructed to do reflect the GST component, which should not have been charged until the GV are redeemed. Am I right in my thinking or am I going crazy??
I am concerned with previous BAS's and the GST side of things.
I am so confused and frustrated!
If you can help in anyway, I would so greatly appreciate it!!
Hi monsta76,
Thanks for your response and explanation.
As per Leneth_A's suggestion. Recording these certain transactions are considered financial advice and we are unable to provide this. We would highly suggest you speak to a financial advisor or get a second opinion from another financial advisor if you don't agree with how they advise you to record these transactions.
Please let us know if you have any other concerns that we could assist.
Cheers,
Genreve
