Solved

Credit for Disputed Items

Forum|Forum|2 years ago
February 5, 2024
2 replies
0 views

Hello,

I have a unique situation I am trying to resolved. I am using Quickbooks Premier 2021.

My company purchased products from another company in June of 2022 that was not delivered. We filed a dispute with the bank in Feb of 2023. The bank reversed the charges as well as any service charges (International bank transfer fees). I am sitting here now trying to figure out how to show that the money came back to us. Because it happened over 2 tax periods I am trying to figure out how to show the checks we wrote in quick books were returned to us and we got a refund.

Technically it was the bank that issued the refund under their charge back protections since the payment was processed by the banks credit card. By that logic it wasn't actually the seller who sent the money back but rather the bank that took the money from the seller and returned it to us. I have tried extensive research on this topic but have only found information relevant to businesses who have a customer do a charge back. In this case we are the customer. I would appreciate any assistance so that I may finally be able to reconcile my books.

Thank you

Sean

QuickBooks Desktop

Best answer by Rainflurry

Hello,

Thank you for the responses, There is a bit of confusion so let me clarify. When I referred to "Write Checks" I was talking about the function in QuickBooks Desktop.

The purchases were through mastercard but not a credit card. It is our bank issued ATM Debit/credit Card. We were able to go to the bank and file a charge back. Because it was an international purchase we also received the the service fees back. So to simplify,

1. Items were purchased in 2022. We wrote checks in quickbooks for recording the purchase.

2. A dispute was filed and granted in 2023 and the money, including the fees were returned to us.

I do not know if the bank issued the money or mastercard or the seller. It just shows up on our bank statement as "refund for disputed item" , "refund for service charge".

Hopefully that helps.

Thank you

@xerxescct

Thanks for clarifying. To record this, follow the instructions in my previous post: create a deposit dated 2023 and assign the same expense account(s) to the deposit that were assigned to the check transaction in 2022. That will reverse the 2022 entry by increasing your bank account and reducing the expense accounts on the deposit. You could also assign an income account to the deposit (the net effect is the same) if the credit results in negative expenses for 2023. Negative expenses look odd on a P&L. Either way works. Hope that helps.

BigRedConsulting

Enter a Credit Card Credit transaction using the credit card account where you initiated the charge back.

Rainflurry

@xerxescct

Create bank deposits that match the dates of the chargebacks received and assign the same expense accounts to the deposits that were used when you wrote the checks. That will deposit the funds into your bank account and reverse the expense(s) from the original checks.

BigRedConsulting

@Rainflurry RE: Create bank deposits

For a credit card refund/charge back?

Rainflurry

@BigRedConsulting

The OP paid directly via bank transfer. There was no mention of using a credit card.

Sign up

Login with SSO

Login to the community

Login with SSO