How to create a Reversal Transaction in Farm Focus

How to create a Reversal Transaction in Farm Focus

Why create a reversal transaction?

Reversal transactions are necessary when:

1. Duplicate Transactions: Occur when the same transaction is recorded twice, such as both manually and via bank feed.
2. Unpresented Transactions: Occur when a transaction has been recorded in Farm Focus but has not yet occurred at the bank (e.g., unpresented cheques).

Important:

• If your GST return is not yet finalised, you can simply delete the duplicate or unpresented transaction.
• If it has been included in a finalised GST return, you must create a reversal transaction to correct it.
• Never change the original transaction, as this will invalidate the GST return and cause discrepancies with what was filed with Inland Revenue.
• Always consult your accountant for specific guidance, especially regarding zero-rated GST claims.

How to create a reversal transaction:

1. Find the duplicate or unpresented transaction

• Go to your Completed Screen in Farm Focus.
• Use the Search function to locate the relevant transaction.

2. Note down the transaction details

• Record the date, amount, other party, and coding details.
• You will need these details when creating the reversal.

3. Create the reversal transaction

• Go to the Needs Action screen under Bank Transactions.
• Click Record to enter a Money In/Out transaction.

• Fill out the reversal details:
  • Transaction date: Match the original transaction.
  • Amount: Match the original transaction.
  • Coding and Other Party: Match the original transaction.
  • Description: Clearly state that it is a Reversal Transaction for easy identification.
• Click Save to complete the reversal.

How does this affect my GST?

The reversal transaction will be pulled into your next GST report, allowing you to claim or correct the GST portion.
The previous GST report remains unaffected by the reversal transaction, ensuring that your filed records with the Inland Revenue stay accurate.