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davido
Level 3

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

Is that the correct way to do it, especially because it was in a different year?
What happens if they refund it as a gift card for the store or cash?
Solved
Best answer February 18, 2019

Best Answers
john-pero
Community Champion

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

If it goes back on a cc card you would enter a cc credit. AS it is a debit card direct from checking, then, yes, deposit of same expense is correct as long as that is not your only expense for the category in 2019. Refunds/rebates as an income account always works.

 

If they give you cash then you "deposit" to Petty Cash. If they issue a gift card or store credit add an account (bank type) to track the value

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Rustler
Level 15

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

@davido

 

Since the refund is in the next calendar year (assuming you use the calendar year as the fiscal year) I would not use an expense account as the source account for the deposit.

 

I would use Other Income as the source account for the deposit, since in my view that is what it is in this fiscal year.

View solution in original post

GarlynGay
Moderator

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

Hello davido,

 

Thanks for coming back. 

 

The date you created the transactions is what really matters. When these transactions are downloaded in your Banking page, you have the option to match them to show that they've are already cleared from your bank. 

 

When you do the reconciliation for the previous month (let's say December), you'll see that these transactions are already checked. You can unchecked them so they will not be included in that period. 

 

Feel free to post more questions. We'll be right here to help. 

 

 

View solution in original post

8 Comments 8
john-pero
Community Champion

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

If it goes back on a cc card you would enter a cc credit. AS it is a debit card direct from checking, then, yes, deposit of same expense is correct as long as that is not your only expense for the category in 2019. Refunds/rebates as an income account always works.

 

If they give you cash then you "deposit" to Petty Cash. If they issue a gift card or store credit add an account (bank type) to track the value

View solution in original post

Rustler
Level 15

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

@davido

 

Since the refund is in the next calendar year (assuming you use the calendar year as the fiscal year) I would not use an expense account as the source account for the deposit.

 

I would use Other Income as the source account for the deposit, since in my view that is what it is in this fiscal year.

View solution in original post

davido
Level 3

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

Thank you very much.

 

Another question regarding the fiscal year:

Yes, we use the calendar year as the fiscal year.

I had an advertising expense on 12/31/18 with PayPal (I would record the transaction as advertising expense on 12. 31.18. in PayPal)

The money transfer from our bank to PayPal is listed as added funds also on 12/31.18.

The transfer on our checking account where the fund comes from is listed as a transaction on 1.2.19. Is the later date an issue with reconciling? 

GarlynGay
Moderator

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

Hello davido,

 

Thanks for coming back. 

 

The date you created the transactions is what really matters. When these transactions are downloaded in your Banking page, you have the option to match them to show that they've are already cleared from your bank. 

 

When you do the reconciliation for the previous month (let's say December), you'll see that these transactions are already checked. You can unchecked them so they will not be included in that period. 

 

Feel free to post more questions. We'll be right here to help. 

 

 

View solution in original post

davido
Level 3

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

Thank you that is very helpful.

So that would also apply if I receive a payment into PayPal on 12.31. ? I see on the PayPal bank statement that  the income and transfer to bank where on 12.31.18. In quickbooks  income is also on 12.31. but the transfer from PayPal to our bank shows up in January. Would I change the date on the transfer to 12.31.18 or uncheck it?

PreciousB
Moderator

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

Hello davido.

 

I'm glad the information shared by my colleague helped you with the reconciliation process.

 

As for your question, you can reconcile the Paypal payment depending on the posting date of the transaction. If it is posted in January, then you'll need to include it on your January's reconciliation. Accordingly, if it is posted in December, then include on December's reconciliation.

 

Check out this article for more insights about reconciliation: How to reconcile accounts.

 

That's it. I’d be glad to help some more if you have other questions about reconciliation or in QuickBooks Online. Have a great day.

RhoseB
Level 1

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

Hello. Can someone please tell me how to do this step by step? I have Quickbooks 2016 desktop version. I'd really appreciate it!  

RhoseB
Level 1

We are a Sole Proprietor. entered office supply purchase $ 30 in 2018. Returned purchase in 2019. Refund on same debit card. Do I enter it as office supply deposit?

Never mind. I figured it out.  : )

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