GFBCUser wrote:Person bought some vinyl flooring from Menards, which was part of a $402 bill for various items. We wrote a reimbursement check through AP for the full amount and debited the "Property Improvement" fund. The vinyl flooring was returned ($185.43 refund) and the purchaser wrote a check to the church for $185.43 to compensate us for the refund (they had originally charged it on their personal debit card).
For some reason I am at a loss at what to do in this situation. Can you help. Thanks.
OK ... so now you have a check for $185.43 and no flooring
Here's what I usually do, since this is a reimbursement to the church. As usual, I advise doing a backup using the Powerchurch backup before doing anything so that you can restore back to the starting point if the results don't turn out as expected.
In Fund Accounting do the following (I'm going to assume that the checking account is 1110-000, the expense is 5510-000, and the fund number is PI (property improvement):
Create a transaction with the following lines:
PI-1110-000 Checking DB 185.43 -- this returns the funds to the checking account and the PI fund
PI-5510-000 Expense CR 185.43 -- this negates the original expense showing that the money was not spent.
I would then enter the following in the note block:
Transaction to reimburse the church for materials purchased with check number 2222, then returned to the dealer for refund by Mr. John Smith. Personal Check from Mr. Smith for refund amount deposited on 2017-10-16 and expense account credited to reflect that money was not spent from the budget.
Then I would deposit the check separately (use a separate deposit slip) from the normal Sunday collection.