What is the best way to refund expenses?

Let’s say I spent for gasoline which was posted twice or mistakenly paid to payee twice in real life situation? How to handle the refund for the overpaid amount? Appreciate your help. Thanks.

These are different situations. If you just mistakenly posted twice, delete one of the entries.

If you overpaid an employee, make a deduction from their payslip. Or have them pay you back and Receive Money.

For the employee case, did you use an expense claim originally? If so, leave it. Never a good idea to delete accounting records for things that actually happened.

However you do this, post any transactions involved to the same expense account where you posted the payment. That way, the amount will be backed out.

If none of this makes sense, provide more details.

I forgot to mention that the expense was made twice on separate dates. One on 21st and other one on 24th for the same expense incurred. Since we reconcile cash account everyday - i think deletion of one entry will be against accounting ethics and is not good practice.

I haven’t used the expense claim program. So, should I credit motor vehicle expenses for gasoline expense and debit my cash account for adjustment providing a narration as refund?

Read about expense claims here. They are designed explicitly for the situation you describe:

Yes. Take note, though, this cannot happen via a journal entry. You should Receive Money in the Cash Accounts tab. And you cannot simply make the entry. You must actually put back the money.

Thank you. I understood how to deal with this now. :slight_smile: