• From: Canada, QC, Montreal
  • Registered: 05/16/2010
  • Posts: 167

Topic: How do I refund someone for an item I want to keep track (and taxes)

Hi

I think it's more an accounting question than a system question, but anyway, here is the description.

One employee paid with his credit card to buy something that I have to keep track of taxes, etc.
So I have to keep this transaction in my books.
Then this employee ask for a refund, therefore I will print a check on the company account.

What transactions should be made ?

Gaston

  • From: Canada, QC, Montreal
  • Registered: 05/16/2010
  • Posts: 167

Re: How do I refund someone for an item I want to keep track (and taxes)

Joe, or Janusz

Would really appreciate to have an advice on that, even it is not really system related.

Thanks

Gaston

  • Registered: 12/25/2007
  • Posts: 2,446

Re: How do I refund someone for an item I want to keep track (and taxes)

I'm not sure, I think it partially depends on accounting rules in your country. In fact in Europe we use cheques rarely, so I would register the related purchase as cash invoice, and refund the costs in cash directly to my employee.

Janusz

  • From: Canada, QC, Montreal
  • Registered: 05/16/2010
  • Posts: 167

Re: How do I refund someone for an item I want to keep track (and taxes)

Thanks Janusz

Someone from US or Canada can help me  ? The refund was done using a check. Therefore there should be a transaction from the bank.

It's like a 2 steps process. First I have to make a transaction  to process taxes, and one to refund the employee.

More help would really be appreciated.

Thanks

Gaston

  • From: Canada, London, Ontario
  • Registered: 11/10/2008
  • Posts: 30

Re: How do I refund someone for an item I want to keep track (and taxes)

Hi Gaston,

If I understand your situation correctly, you want to post a refund and adjust sales taxes accordingly.

Can't you just post a general ledger entry or a bank account payment entry that:
1) Increases your Refunds account (or decreases Sales account)
2) Decreases Sales taxes collected (or increases sales taxes paid)
3) Decreases Cash account

I think that's what I would do.

Hope it helps.

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