Posts by Sam Foster7

Brenda Chase3 said:If he counted it twice for sales tax purposes, then you should just reduce the liability for the December 2015 period by that one extra payment. Honestly, though, I’m still struggling to wrap my head around how he logged two separate payments if there was only one invoice to begin with. How can you close out the exact same invoice twice if it was only generated once? Is this being handled within the KPI, the IRA, or just via the sales tax return during the calculation phase...

It doesn't make sense to me either—he mentioned he was tracking the bank statements instead of the actual invoices... 🤦 He closed it out in both the KPI and the IRA, which then trickled down into the sales tax return.

Brenda Chase3 said:Wait, let's clear this up... did you end up recording both invoices in May, or did you skip them entirely? You mentioned that both were booked, which implies that the same invoice was issued twice and recorded as such. If that's the case, one of them definitely needs to be voided, assuming the money has already been refunded to the client. It sounds like the actual sequence of events wasn't quite explained clearly enough.

My bad, I definitely phrased that poorly—what I meant was there’s just one single invoice that ended up being paid twice, even though only one was ever issued. And yeah, he went ahead and recorded both those incoming payments against that one lone invoice. Hopefully, that clears things up a bit better...

Brenda Chase3 said:Just void that invoice in the December 2015 period and adjust everything through the December 2015 sales tax return.

Could someone walk me through how that would actually look? I mean... how am I supposed to void an invoice that wasn't even officially issued yet? I'm honestly a bit stumped on the execution part... My only thought was to just reduce the total sales tax liability for the December 2015 filing by that amount. But then I wonder—would I need to send some kind of explanation to the IRS since it’ll create a discrepancy in my total annual turnover figures?...

So, I’ve got this small business client who realized they accidentally paid the exact same invoice twice back in May 2015. They just caught the error and sent the overpayment back today... which obviously creates a bit of a headache because, well, they already booked both payments as separate transactions back in May. Now I'm trying to figure out the cleanest way to show this in the books—how should I handle the adjustment? Is there a way to fix this through the final sales tax return, or am I looking at something more complicated?...