MonicaG
Level 3

Recording an erroneous refund

A customer's account was mistakenly credited $100 instead of being debited that amount (for an invoice payment) via our ACH system. When the mistake was discovered, we debited that $100 sent in error, plus they were debited  $100 for their invoice. So first we transferred $100 out of our account and then we received $200 in our account.

 

Unfortunately, the two transactions happened in different months. The credit was effected at the end of March, so the deduction of $100 shows on our March statement. The $200 credit posted to our account on April 1. So how do I record that initial mistake and the reversal so that both March and April reconcile?

Solved