Amount paid to us in error, how to record payment received and refund made

Question

Hi

We received an amount in our bank account that was EFT'd  to us in error.

I've contacted the company and have refunded the amount back to their bank account.   Both transactions are showing in my bank feed

Can somebody assist please.

1.  How do I record the payment we received in error

2.  How to I record the refund that I returned to that person

Thanks in advance for your assistance. I have no idea how to record these 2 entries

Tracey_H · Answer

Hi @kazda

I'd record a Spend money transaction and a Receive money transaction, allocate both to the suspense account. You've then got an audit trail of the transactions without it affecting your account balances.

Please let me know if you need further help.

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kazda · Answer

Hi gavin12345

I'd prefer to record both transactions so we have a record of the payment and the return, however if no other solutions are offered I'll hide both transactions.  thanks for your idea.

Cheers

gavin12345 · Answer

Hi @kazda

Just a thought - and while this may not be PC, don't record either as transactions, simply hide the 2 bank feed entries, which should offset each other.

Regards

Gavin