FrontAccounting forum — How do I refund someone for an item I want to keep track (and taxes)

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

null@example.com (MozMan) — Mon, 18 Jul 2011 18:29:16 +0000

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.

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

null@example.com (huotg01) — Tue, 01 Mar 2011 13:02:19 +0000

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

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

null@example.com (itronics) — Tue, 01 Mar 2011 09:17:12 +0000

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

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

null@example.com (huotg01) — Tue, 01 Mar 2011 00:19:49 +0000

Joe, or Janusz

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

Thanks

Gaston

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

null@example.com (huotg01) — Mon, 28 Feb 2011 11:43:44 +0000

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