Recording a Credit Card Refund

Some Of the nominals and ledgers used in this topic may be different to those in your chart of accounts.

If an item has been purchased on a credit card and subsequently refunded, the refunded amount needs to be recorded against the original payment using a Journal document input form to debit the account and reduce the amount due for payment, to match the credit card statement.

Credit card refunds may be a full or partial refund of the original expense, follow the instructions for the applicable refund type.

Record a Full Refund for a Credit Card Expense

Record a Partial Refund for a Credit Card Expense

Record a Full Refund for a Credit Card Expense

If the full amount of the original credit card expense is being refunded, the original credit card expense document can be reversed (cancelled).

1. Select Enquiries, then select Document Enquiry from the menu.
   

2. The Document Enquiry Criteria dialog is displayed. Find the document type the credit card expense was recorded on.
   
   

3. If the document number of the document to which the refund relates is known, select Equals from the Document Number drop-down list, then enter the document number in Value 1 e.g. 5, then select OK to confirm the selections.
   

4. The Document Enquiry window is displayed. If a document number was not specified in the criteria, a list of all documents of the document type are displayed. Find the required document. If you want to view the individual transactions included in the document, select Expand (+) adjacent to the Document Type column for the selected document to display the details panel.
   
   

5. Select the document to which the refund relates, then select COPY.
   

6. The Document Input dialog is displayed. Select Reverse values, then select Drill (...) in Document type. Double-select to select JRNL - Journal from the Select a document type dialog.
   
   

7. The Date defaults to the date that you are entering the information, i.e. today's date. The date must be the same date as the date of the refund on the credit card statement. To change the date, select the Date drop-down arrow and select the required date from the calendar. Alternatively you can, select the up-down buttons, or overwrite the date using a DD Month YYYY format, for example, 25 January 2021.
   

8. The Period defaults to the current accounting period. The document period needs to be the accounting period in which the refund was received. If the required accounting period is now closed and no longer available, select the next open accounting period by selecting Drill (...) in Period. Double-select to select the required period from the Select a period dialog.
   
   

9. Select OK to confirm your selections.
   

10. The PSFJournal document input form is displayed populated with the details entered in the Document Input dialog and the details of the original transaction with the credits and debits reversed.
    

11. If the payment has VAT , check the VAT period in the Account column on the VAT line is open. If the period is no longer open, double-select in the VAT line Account column, then double-select to select the next available VAT period from the Select VAT account dialog.
    

12. When all the required payment information has been checked, press F5 or select POST to post the refund.
    

13. The reversed document for the credit card refund is posted to the credit card account. To view the document, run a Detail Enquiry or find the document on the supplier's account. For more information, refer to Running a Detail Enquiry or View Supplier Transactions.
    

Record a Partial Refund for a Credit Card Expense

1. Select Documents, then select Document Input from the menu.
   

2. The Document Input dialog is displayed. To select the system journal document type, select Drill (...) in Document type, then double-select to selectJRNL - Journal from the Select a document type dialog.
   
   

3. Next, select Drill (...) in Input form, then double-select to select Journal from the Select an input form dialog.
   
   

4. The Date defaults to the date that you are entering the information, i.e. today's date. The date must be the same date as the date of the refund on the credit card statement. To change the date, select the Date drop-down arrow and select the required date from the calendar. Alternatively you can, select the up-down buttons, or overwrite the date using a DD Month YYYY format, for example, 25 January 2021.
   

5. The Period defaults to the current accounting period. The document period needs to be the accounting period in which the refund was received. If the required accounting period is now closed and no longer available, select the next open accounting period by selecting Drill (...) in Period. Double-select to select the required period from the Select a period dialog.
   
   

6. Select OK to confirm your selections.
   

7. The Journal document input form is displayed populated with the details entered in the Document Input dialog.
   

8. Firstly, debit the credit card control nominal with the total amount being refunded. Double-select in Nominal, then double-select to select the required credit card nominal from the Select a nominal dialog.
   

9. Double-select in Account, then double-select to select the account to which the original payment was posted.
   

10. Next, enter the total value for the refund in Value, e.g. 200.00 (do not enter any currency symbols i.e. £, $, etc.)
    

11. Enter a description to help identify the purpose of the credit card refund in Description, e.g. Partial Refund.
    

12. Next, credit the expense nominal to which the payment the refund relates to was originally posted. To insert a new row to enter the item details, select INSERT ROW.
    

13. On the new inserted row, double-select in Nominal, then double-select to select the required expense nominal from the Select a nominal dialog.
    

14. Next, select the account for the expense nominal to which the payment the refund relates to was originally posted. Double-select in Account, then double-select to select the required account from the Select account dialog.

15. Enter the negative value of the refund excluding any VAT amount in Value, e.g. -166.67 (do not enter any currency symbols i.e. £, $, etc.)
    

16. Next, if the refund amount includes a VAT value, enter the negative value of the VAT amount in User Value, e.g. -33.33 (do not enter any currency symbols i.e. £, $, etc.)
    

17. If a VAT value has been entered, double-select in Tax Type, then double-select to select the required VAT rate (this must be the same VAT rate as the original payment) from the Select VATRATES key dialog.
    

18. Enter a description to help identify the purpose of the credit card refund in Description, e.g. Partial Refund.
    

19. If the refund contains a VAT value, the amount of VAT needs to be credited against the VAT Input nominal. To insert a new row to enter the item details, select INSERT ROW.

20. On the new inserted row, select the VAT Input nominal. Double-select in Nominal, then double-select to select 5305 - Purchase VAT (Input) from the Select a nominal dialog.
    

21. The current VAT period is automatically populated in Account. If the VAT period is not the VAT period to which the original payment was posted, then if the VAT Period is still open, the VAT period to which the refund is to be posted needs to be amended. To change the VAT period, double-select in Account on the VAT Input nominal row, then double-select to select the required VAT period from Select VAT account dialog.
    

22. Next, enter the negative value of the VAT amount in Value, e.g. -33.33 (do not enter any currency symbols i.e. £, $, etc.)
    

23. Enter the negative value of the refund excluding any VAT amount in UserValue, e.g. -166.67 (do not enter any currency symbols i.e. £, $, etc.)
    
    If the values entered in the Value column for all item rows do not balance to zero (0), then the Document Doesn't Balance to Zero Please Balance Document to Post message is displayed in the bottom left-hand corner. To correct the issue, check the amounts in the Value column balance to zero (0) and amend the value for any incorrect value to display 0.00 in Document Balance.
    

24. Next, double-select in Tax Type, then double-select to select the required VAT rate (this must be the same VAT rate as the original payment) from the Select VATRATES key dialog.
    

25. Enter a description to help identify the purpose of the credit card refund in Description, e.g. Partial Refund.
    

26. If the refund is for a payment originally made to a supplier, enter the supplier VAT number in Userfield 3 on the VAT item row.
    

27. When you have entered all the partial refund details, press F5 or select POST to post the document. The refund amount is automatically deducted from the outstanding balance on the credit card account.