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MySF Administrator
Group: Administrators
Last Login: 17/05/2010 6:31:15 PM
Posts: 464,
Visits: 632
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Scott,
Please let us know whether or not this amount is due to excessive franking credits. The rollover process will gather up the franking credits and place them into the tax liability, which will end up with a negative amount in such a case, that is the ATO owning you some tax back.
Posting a credit to the 2120 account will increase it from the negative figure to zero it off when you receive the refund.
Please note that if there are additional components in the refund (such as interest, as in the posts above) then they need to go to a different account.
Regards,
MySF
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Advanced Member
Group: Forum Members
Last Login: 30/08/2010 1:41:22 AM
Posts: 69,
Visits: 177
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Maybe I've assumed the wrong thing at the start of the thread. I received a notice of refund that simply says 2006 "Assesment balance" and "amount refundable". The amount was a tiny $4.48 which arose because I managed to offset income received with franking credits and interest paid within the instalment receipts in the fund. I credited a/c 2120"Income Tax payable" and debited "Bank" as I was following the example at the top of the thread. Have I got the wrong idea?
Regards
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MySF Administrator
Group: Administrators
Last Login: 17/05/2010 6:31:15 PM
Posts: 464,
Visits: 632
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Hi,
It sounds like you have processed this refund correctly.
Regards,
MySF
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Advanced Member
Group: Forum Members
Last Login: 30/08/2010 1:41:22 AM
Posts: 69,
Visits: 177
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Hi,
I just noticed on a trial balance that I have a 6 cent balance in a/c 2120 which I presume occurs because of rounding differences between the ATO file assesment and the MySF system. Do I need to make an adjustment to bring it back to zero or just ignore it. If I do need to adjust what are the entries going to be?
Regards
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MySF Administrator
Group: Administrators
Last Login: 17/05/2010 6:31:15 PM
Posts: 464,
Visits: 632
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Hi,
The remaining amount in this case is probably not significant enough to worry about. It is likely to be due to rounding.
If you do wish to remove the amount, you can do so by recoding a journal against a non-taxable expense account. Assuming that the balance in 2120 is on the CR side, the entries would be:
DR 2120 $0.06
CR <non taxable expense account> $0.06
Regards,
MySF
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