PAYG ATO refund - what do I record it as ? What if amount doesnt match PAYG liability?

Hi MoiraAMWS,

This depends on why you have received this payment. If you have received the refund for a BAS or IAS you have marked as lodged in the GST centre, you can record the refund here and then match the payment from your bank feed to this record:

1. Select GST on the left hand menu.
2. Locate the BAS or IAS and click Record Refund.
3. Select the Account the payment was deposited into and the Date of the refund.
4. Input any Memo for the transaction, then select Save.
5. Select the Banking tab and click on the transaction to expand it.
6. If it has already matched to the payment you have just recorded, select Match. If not, select Find Match, select the payment you have recorded and Save.

If the amount from the ATO doesn't match to what is showing in your PAYG Liability account, I would suggest as a starting point to review the transactions that make up the balance of this account so you can locate the discrepancy. Once you know where the difference comes from you can determine why (eg if the amount comes from a BAS or IAS lodged after this refund was received, or so on). Feel free to reply if you have further questions as I'm here to help. As there are a number of reasons why your PAYG refund may not match your account, I would also suggest you reach out to our Support Team directly on 1800 046 038 if you require assistance as they have the tools to pull up your account and guide you further. 

-Kass

Hi Kass

thank you, I dont submit the ATO data through QBO, its done separately by the accountant, so i cant find a spot to record a refund...

IS there a spot in chart of accounts that i can add or create to move the money too, until I can figure it out and move from BANKING?

How would I do that?

Thank you

Hi MoiraAMWS,

You can certainly create a clearing or 'holding' account to move this amount to if you prefer:

1. Select the Settings icon (top right) then Chart of Accounts.
2. Select the green New button (top right).
3. For both Account type and Detail type, select Cash and Cash equivalent. Give the account a name (eg Clearing, or Holding) and Save and Close.
4. Go to the Banking tab and click on the transaction to expand it.
5. From the Category dropdown, select the account you've created. Use the tax code Out-of-Scope, then Add.

Now the amount will sit here until you are ready to allocate it. As you mentioned your accountant organises your ATO lodgements separately to QuickBooks and also that you have a discrepancy on your PAYG Liability account, I would recommend you speak with them for the best option for you to record both the lodged amount and the refund. We are not accountants and cannot provide advice specific to your books however your accountant will be able to provide you with tailored information as required. You can also see here for a guide on recording GST refunds when not using the GST centre - please keep in mind however that this example is for GST refunds specifically rather than PAYG alone and you would need to adjust the accounts accordingly.

-Kass