You may have transactions that have been accidentally included or excluded from your GST return and will need a Reversal Transaction recorded to correct this.
This is an accidental double-up of transactions and can occur when transactions have been entered in two different ways. For example, you may have made a manual record from an invoice and also automatically imported the transaction from the bank feed, giving a double-up of a transaction.
Transactions that have been entered into Farm Focus and processed in the GST return, but haven't yet happened at the bank i.e. unpresented cheques
If your GST return is not yet finalised, you can delete these transactions. However, if they have been included in a final GST return you will need to create a reversal to account for this error.
You cannot make any changes to the original transaction as it will invalidate the GST return and it will no longer match what was filed with IRD.
How to create a reversal transaction:
1. Find the duplicate or unpresented transaction in your Completed Screen
You can use the Search function to locate the relevant transaction.
2. Note down the transaction details
You will need the date, amount(s), other party and coding details. You will use these to create the reversal.
3. Create the reversal transaction
To create a reversal transaction you will need to create the opposite of the original transaction e.g. if it was an income transaction your reversal would be an expense transaction and vice versa.
In your Needs Action screen, under Bank Transactions, click on Record to record a Money In/Out transaction.
Fill out the details with the Transaction date, Amount, Coding and Other Party the same as the original transaction.
Record clearly under the description that this is a Reversal so that this transaction can be located again in the future.
Click Save to save the reversal.
How will this affect my GST?
The reversal transaction will be pulled into your next GST report so that the GST portion can be claimed and corrected in the next GST return. The previous GST report remains unaffected by the reversal transaction.