I have lodged my activity statement and have since received a credit note from a supplier advising me of a volume discount provided on invoices sent to me during the last quarter. What should I do?
It is important to remember that this type of an event is not unusual in business. It is not considered to be a mistake, simply a change in the amount of a purchase. The change is accounted for as an adjustment in the activity statement for the period that the volume discount notice is received. How you deal with it will depend on whether you are using the calculation sheet method or the accounts method to calculate your GST. For example: Ourco Pty Ltd is a retailer of spare parts for cars. In August they made a large purchase of parts from U-beaut Car Parts. Ourco paid the invoice in September. In October (after lodging its activity statement) Ourco received a credit note showing a discount for volume purchases made in the July to September period. If Ourco uses the calculation sheet method to calculate its GST obligations, it would show the decrease in input tax credits as an adjustment at box G7 on the calculation worksheet. However, if Ourco uses the accounts method, then no adjust
