I am using Manager version 21.7.13 and am still new to this application. I am stuck with the following scenario and do not know how to go about it in this application. I had tried to look for the answer in the guides and forum but was unsuccessful.
It was about the credit card statement and credit card refund. I am using the business credit card to do the necessary expenses. For example, the total credit card for the month is $2,000. In the credit card statement, there was a credit card refund for expenses that amounted $100. The total credit card payment was $1,900 instead of $2,000.
If not mistaken, the manual accounting entry would be:
Dr Credit Card $1,900
Dr Expenses $100
Cr Bank $2,000
I am not sure whether I have missed some of the steps and would Iike to know how to reflect this in the Manager? Your steps by steps input and expertise are appreciated.
Please clarify what you mean by “credit card payment.” Are you referring to paying the balance due on your card? If so, that requires an inter account transfer in Manager.
Or are you referring to paying for something with a credit card? That requires a payment transaction. In that context, a refund of a previous purchase requires a receipt or negative sales invoice, posted to the credit card bank account.
The bottom line is that you have not given sufficient information to allow your questions to be answered.
You should also update your software. You are many hundreds of versions behind.
Hi Tut, my apology. it is referring to paying the balance due on the credit card.
You are numerous versions behind, so while still new to Manager as you indicate it would be better to regularly update Manager. The version at the moment of this post is v184.108.40.206
Then use an inter account transfer for 1900. But first, create the transaction for the refund. At that point, the balance of the credit card liability account should be 1900. After the inter account transfer, that balance should be zero.
Hi Eko, thank you for reminding me of the update. I am aware of it. I will update the version once I am done with the accounting posting. I am worried that the new update would be affecting all the current settings on the older version and I have to redo it again. Is there any worry that I have to pay attention to if I update to the latest version now?
Hi, I followed the steps as advised. After the transaction for the refund and the inter account transfer, the credit card balance is zeroized. Then I notice that the retained earning on the Balance Sheet has increased by the amount of $100 and the expenses in the Profit & Loss Statement reduced by the same amount (the same amount of the transaction of refund). Is this correctly reflected? Thank you.
You initially made a payment of $ 100 and included it in your expenses, so it completely normal that if you get a refund, it will reduce your expenses and increase your profit
Thank you for your input. Appreciated.