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SunshineBe77829
Level 3

Recording a refund of a fee in desktop

SunTrust bank sent us a notice that they charged us 19.95 for something we did not sign up for, and that they are refunding the 19.95. I initially recorded the refund as a deposit into "Other income". However it's now showing up on the P&L like a sore thumb, as we are a non-profit, and I have to create Statements of Operations from the P&L. I feel like I should have made a General Journal Entry to record this refund, but I can't think of how it should look. Am I on the right track? I'm using QB Desktop. 

                                                                    Debit           Credit

SunTrust checking                                                         19.95

Office: Common Accts: Bank Fees      19.95

 

Am I on the right track? 

6 Comments 6
MariaSoledadG
QuickBooks Team

Recording a refund of a fee in desktop

Yes, you're on the right track with your Journal Entry,  SunshineBe77829.

 

If the Office: Common Accts: Bank Fees account is the account being used when the bank was charged, then your entry is correct. However, I still suggest reaching out to your accountant for other ways on how to record them. 

 

For more information, you can refer to these articles:

If you want a report that will show debits and credits for each transaction, run the Transaction Journal Report. You might want to consider this article for future reference: View The Transaction Journal Report In QuickBooks Desktop.

 

Keep in touch and let me know if you need further assistance with your refund. Remember, we're only one post away if you need help.

SunshineBe77829
Level 3

Recording a refund of a fee in desktop

Thank you so much for your reply and additional information. Our accountant rarely ever returns my messages, so I can't really rely on him, unfortunately. And the tip on what the account was used when the charge was made, was good - it made me look back instead of assuming it was bank charges. The bad news is that the charge was done in 2014-2016 (according to the letter from SunTrust), and probably lumped into other "bank charges". To complicate matters, in 2014 until 8/2016, whoever was the bookkeeper used "Office:Marketing:Credit Card", then for some reason in 8/2016, they started using "Office:Common Accounts:Bank Charges". Uggghghhh! The lady who trained me entered the picture in 2017, and she used "Office: Common Accts: Bank Fees", so that's what I use. I don't know what to use now! 

AileneA
QuickBooks Team

Recording a refund of a fee in desktop

Hi there, SunshineBe77829. 

 

Thank you for reaching back to the Community. I suggest looking back at your QuickBooks to look over when was the charge recorded and use the same account as it is. 

 

Or for the meantime, you can use the current bank charge that you've and wait for the accountant's reply to make sure your book is accurate and less complicated. 

  

In addition, here's an article you can read to learn more about recorfing refund: Record a Credit Memo or Refund in QuickBooks Desktop

 

Lastly, feel free to visit our Help Articles page for QuickBooks Desktop if in case you need to learn some "How Do I" steps. 

 

Please don't hesitate to let me know if you have further questions aside from recording refund of a fee. I'd be glad to help you out. Have a great day!

SunshineBe77829
Level 3

Recording a refund of a fee in desktop

Hi AileneA,

Thanks for the additional response. Responding in case someone else ever has this issue. So, in my previous message I indicated that I did look back and found 2 different accounts that could have been used. I should have mentioned that I can't tell which one this particular $19.95 charge was in because all of the fees are lump sums. There is not one that is solely $19/95, so I can't tell which account was used for this particular one. SO I think I'm just going to have to try each one and see what happens. I do appreciate your advice though! I was hoping to not have to wait for the accountant to get back to me because I have to complete our 4th quarter financials by tomorrow morning, and he may take forever to get back to me. I sent him a message about helping me get rid of old transactions in my reconciliations about a month ago and I'm still waiting. Maybe that's something you can help me with? When I go to reconcile the bank account, there are both deposits and checks hanging around from 2016-2019. I would like to get rid of those. My former CPA boss used to do it with a GJE I think, but I can't remember exactly.  

Rose-A
Moderator

Recording a refund of a fee in desktop

Hey there, SunshineBe77829.

 

Before weeding out your old transactions (2016-2019) in QuickBooks Desktop, it be best to wait for your Accountant's review and advise. The fact that there are un-reconciled transactions is a red flag that help is needed.

 

Regarding with your reimbursement, if you'll record this transaction via the journal entry, you can select the current date. This way, it will not affect your September's reconciliation.

 

However, using this method (journal entry) needs the assistance of an accounting professional for the accounts you need to use. Also, your accountant can help and guide on which account to debit and credit. Doing so will help you ensure the accuracy of your financial records.

 

To know more about the GJE process, here's an article for your reference: Create a journal entry in QuickBooks Desktop for Windows or Mac. Also, this will provide you steps on how to reverse a journal entry.

 

If you have anything else you'd like to go over, feel free to reach out to me here in the Community. I'd be glad to help.

Rainflurry
Level 13

Recording a refund of a fee in desktop

I would enter the original fee as a check written to the bank (use check # EFT or something other than an actual check #) assigned to the Bank Fees expense account you mentioned. 

 

Then, enter a deposit from the bank on the date of the refund using the same Bank Fees expense account in the 'From Account' field.  These two entries will offset each other (no impact on P&L) but will still show up on your monthly bank reconciliation as you want. 

 

You can do it with journal entries too, but this is cleaner IMO.  Others may have other ways, but this will work and I hope this helps.

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