Hi there! How would I record a DEBIT card refund that shows up in my transactions as a deposit?
Example) I pre-pay for diesel $650. Truck only takes $625 and $25 is refunded in a separate transaction. Would I credit my diesel account or record it in a separate “refunds” account? Can/should I split the transaction and show $625 diesel and $25 refund?
You can do one of two things:
1. Record the refund back to the original expense account (diesel fuel).
2. Set up an account called Diesel refunds and record it to this account.
Unless there is a reason why you need to track these refunds separately, I recommend going with option #1. Since the original transaction was recorded to diesel fuel, the refund should be recorded there as well. This will ensure that your diesel fuel expense account will show the actual amount spent on your profit and loss statement.
Thank you for reading!
315 Madison Avenue, 24th Floor
New York, NY 10017
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.