In Cash Accounts I am entering “receive money” for a returned item I purchased from a retailer. Where would I categorize it under chart of accounts?
That will depend on how your chart of accounts has been set up and where you allocated the original purchase of the item. If the retailer was someone you do business with on a credit basis, so that you used a purchase invoice, you can allocate the refund to
Supplier credits and the supplier’s subaccount. That approach presumes you were given a credit, not cash money.
If you just used Spend Money from a cash account or a supplier gave you cash, even though you paid from a purchase invoice, use Receive Money in a cash account. Allocate the transaction to the expense account where you originally allocated the purchase. Because you have used Receive Money, Manager will know to subtract the amount from the balance of that expense account.
I used spent money from a cash account. I purchased material from a retailer using a debit card. I returned the item back to the retailer. So I go back to cash account and click on receive money and do I need to categorize it under chart of accounts as an income?
You can do the following ;
Issue a debit note to the supplier to zero out the purchase
You will notice that you will have supplier credit under asset in your balance sheet. This is because the purchase has been reversed but the cash hasn’t been reversed/returned.
Now, receive money from supplier credit account and select customer.
No, that would misrepresent things, as you have done nothing to earn revenue. This return is just the reversal of a purchase. When you used Spend Money to buy the item, Manager debited the expense account you chose and credited the cash account associated with your card. Since you no longer have the expense, use Receive Money to the same bank account and allocate the transaction to the same expense account. Manager will credit the expense account and debit the cash account. Both halves of the double-entry transaction will be reversed, just as though you never purchased the item. But the record of spending and receiving money will remain, as it should.
As I was writing this, @Abeiku’s response appeared. His comments would apply if you had used a purchase invoice in favor of a supplier. But as I understand things, you just purchased from a merchant, paying at the time you picked up the item.
So under account I would just leave it as suspense?
Suspense is an account where Manager saves incomplete, unbalanced, or incorrect transactions. Nothing should ever be there. Manager stores transactions there only so you can remedy the problem.
I can’t answer your question without more information. Can you click on the blue balance of the
Suspense account on the
Summary page and tell me what shows up? Or better yet, post a screen shot.
Writing in the blind, however, when you first bought the item, you should have used the Spend Money function within a cash account set up for the bank account to which your debit card belonged. At that time, you should have allocated the purchase to an expense account, something like
Office supplies, or whatever it was you purchased. When you returned it, you should use Receive Money in the same cash account, allocating the return to the same expense account where you allocated the purchase.
Quite simply, you would use the same chart of account as used for the purchase of the material.
If you did Spend Money with account "Material Costs"
Then you would do Receive Money with account “Material Costs”
This way the initial expense would be cancelled out, as though you never purchased it