Credit Card Refunds

[MWH]

So each month we pay off the credit card via a manual check, all of the transactions are associated to the correct fund, how do you handle refunds of items that are posted to the credit card after you have already paid and posted the Credit card transaction?

[NeilZ]

So each month we pay off the credit card via a manual check, all of the transactions are associated to the correct fund, how do you handle refunds of items that are posted to the credit card after you have already paid and posted the Credit card transaction?

First off, how do you handle the Credit Card? Do you enter receipts as they come in from the card, then when you get the statement, you reconcile, and send off a check?

If you could explain your process, then we can give a better step by step process to take care of this.

However, as a rule of thumb, these type of returns show up on the next month bill, therefore you will get a credit on the statement for whatever amount.

You need to reflect that also in Powerchurch. So if you debited an expense account for an item, and credited the liability account for later reconciliation and payment through a manual check, then you would basically do the same with the credit, but credit the expense account (as the item was returned and you do not want to show an expense where there was none), and then debit the liability account to reflect the amount that will be returned on the next credit card statement. Of course, you would enter as much detail as possible explaining the transactions.

You do know that as of the last MR, v11.5 now has the capability to reconcile credit card accounts much as you would your checking account. Here's the newsletter that talked about that:

https://www.powerchurch.com/support/441 ... pring-2015