Credit card refund

[Patricia]

I know this is not exactly a new topic, however I have looked at other posts and still not sure what to do.

Our credit card is a vendor acct. not a liability acct. We have a refund on this month's statement. Can I put the refund amount in the credit column? When I do so it says the transaction is in balance. Not sure if this is the right way to do it??? TIA Pat

[Patricia]

It's probably not the right way but will it mess anything up?

[NeilZ]

I know this is not exactly a new topic, however I have looked at other posts and still not sure what to do.

Our credit card is a vendor acct. not a liability acct. We have a refund on this month's statement. Can I put the refund amount in the credit column? When I do so it says the transaction is in balance. Not sure if this is the right way to do it??? TIA Pat

Is this an actually 'REFUND' or a credit on the statement? Did you see money come back, or are they just not charging you because you had a credit? Was the refund due to something being returned?

Example:

Statement is for 250.00

Past month's charges total $300.00
You have a credit of $50.00 so you only owe $250.00 ??

Is there a ministry that is supposed to have its expenses reduced??

[Patricia]

It was a credit dispute adjustment, which was originally for advertising.

[Patricia]

I put the account number for advertising, account name advertising, description credit dispute, then put the amount under credit.

[NeilZ]

I put the account number for advertising, account name advertising, description credit dispute, then put the amount under credit.

That will do it. The account is 'refunded' the funds initially spent and lowers their total expenses. I do suggest that you think about creating a credit card liability account as it makes handling these sorts of things much easier.

[Patricia]

Thank you. I get all of the receipts along with the bank statement at the same time. Would it still be better to create a liability account?

[Patricia]

credit card statement

[NeilZ]

Thank you. I get all of the receipts along with the bank statement at the same time. Would it still be better to create a liability account?

It can be. It unusual to get all the receipts at the same time, as people would buy things through the month. With the liability account, they're entered as they come in, then when the statement arrives, all I have to do is reconcile, and then write the check.

[Patricia]

Okay, thank you.