Credit Memo Question

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

Credit Memo Question

Postby brucet7 » Fri Feb 14, 2020 8:16 pm

We use accounts receivable to collect and track individuals money for mission trips. On occasion people use their own credit card to pay for a trip expense, such as buying airline tickets. We want to lower the amount owed on the invoice and assume that it is a credit memo, but we cannot figure out the credit (liability) account to use as this money has not entered into the system.

We thought about giving a non-cash contrib and doing that but are not sure it is right. Confessions, we are not real bookkeepers or accountants.
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Re: Credit Memo Question

Postby NeilZ » Sat Feb 15, 2020 3:23 pm

brucet7 wrote:We use accounts receivable to collect and track individuals money for mission trips. On occasion people use their own credit card to pay for a trip expense, such as buying airline tickets. We want to lower the amount owed on the invoice and assume that it is a credit memo, but we cannot figure out the credit (liability) account to use as this money has not entered into the system.

We thought about giving a non-cash contrib and doing that but are not sure it is right. Confessions, we are not real bookkeepers or accountants.


FWIW ... its not a contribution, as they're paying for their airline fare or other such personal expense. This is per IRS regulations. You can edit the invoice to adjust the amount owed for their trip costs, but it would not be a credit memo, as there really aren't funds to credit, and you haven't posted anything to Funds Accounting that would add a debit or credit to any accounts.

Neil Zampella

Using PC+ since 1999.
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Re: Credit Memo Question

Postby brucet7 » Wed Feb 19, 2020 8:37 pm

Thank you so very much. That makes this a whole lot easier.
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