how to record a refunded transfer
Hi, I processed a transfer and I made a typo in the bank acc. Therefore the transfer was returned. How should I record these 2 transactions and the return fee in MYOB? Screenshoot attached...
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Tank you for your message. I would like to clarify something else regarding the point no 2.:
1. For the payment click on New>>Spend money and select the suspense type account. Correct.
2. For the returned funds click on New>>Receive money and select the suspense type account.
Should I select the same expense account as I have selected in the step 1?
For example: step 1: I select Spend Money >> Fundraising expense account.
Which account do I have to select in the step 2?
a) Receive money >> fundraising expense or
b) Receive money >> fundraising income
this is an income but it is a returned transfer...
3. For the fees click on New>>Spend money and select the applicable expense account. Correct
Thankl you so much
Hi Paula3
You should have two payment transactions and one refund transaction. One payment transaction should be recorded as normal and allocated to the applicable expense account. This transaction is matched to the bank feed with the correct bank account details and posts the expense to the applicable account.
The Spend money transaction for the incorrect payment is allocated to the suspense account:
The Receive money transaction for the returned amount is allocated to the suspense account:
When you search the suspense account in Find transactions the Spend money and Receive money transactions clear each other out so the balance of that account is $0.00:
As the incorrect payment and refund are just money going out and then coming back in there's no affect on the bank account balance or your financial accounts. Allocating these transactions to the suspense account is a way of recording the transactions to match with bank feeds without affecting the bank account balance or financial accounts.
Please let me know if you need further help.
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