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how to record a refunded transfer

Paula3
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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.

 

Thank you. 

3 REPLIES 3
Tracey_H
MYOB Moderator
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MYOB Moderator
MYOB Moderator

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Re: how to record a refunded transfer

Hi @Paula3 

 

Thanks for your post. One way to handle this is to allocate the payment and the returned amount to a suspense type account. As they are in and out transactions they clear each other out so the suspense account will be cleared back to zero. 

 

The return fee would typically be allocated to a bank fees expense account.

 

For the payment click on New>>Spend money and select the suspense type account.

For the returned funds click on New>>Receive money and select the suspense type account.

For the fees click on New>>Spend money and select the applicable expense account.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,
Tracey
Previously @bungy15

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Paula3
Contributing User
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Re: how to record a refunded transfer

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

Tracey_H
MYOB Moderator
11,392 Posts
MYOB Moderator
MYOB Moderator

11,392Posts

1,343Kudos

1,703Solutions

Re: how to record a refunded transfer

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:

 

image.png

 

The Receive money transaction for the returned amount is allocated to the suspense account:

 

image.png

 

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:

 

image.png

 

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.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,
Tracey
Previously @bungy15

MYOB Community Support

Online Help| Forum Search| my.MYOB| Download Page

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