Bank made a mistake - feedback requested
I am new to double-entry accounting, so I was wondering if I could get some feedback from some pros out there. I ran into this situation when trying to match my bank account transactions with what I had input into Accounting. A customer paid me for an invoice in cash. The ATM failed to recognize one of the bills, and would not let me correct it, so basically I got shorted $5. I called the bank's customer service, and they credited it back to me.
So in Accounting, I had originally recorded that I had deposited the full amount that the customer provided in payment of the invoice...this was all well and good until I downloaded the bank data and tried to match transactions. MS Accounting refused to let me correlate the two bank transactions (original deposit plus credit) to the one customer payment. Finally, I edited the customer payment (which of course MS Accouting lamely forces me to void and re-create ... WTH Microsoft! ), and this time deposited the customer payment into the "Undeposited Funds" account. I then created a journal entry, where in one voucher, the Undeposited Funds account was credited for the amount that actually was recognized by the ATM, and the checking account debited, then a second voucher where Undeposited Funds was credited for the remaining $5, and then debited to the checking account. I shoved an explanation into the memo field to explain it for reference during tax time.
Has anyone else run across this, and what would you have done differently?
Thanks!
Tom
I am new to double-entry accounting, so I was wondering if I could get some feedback from some pros out there. I ran into this situation when trying to match my bank account transactions with what I had input into Accounting. A customer paid me for an invoice in cash. The ATM failed to recognize one of the bills, and would not let me correct it, so basically I got shorted $5. I called the bank's customer service, and they credited it back to me.
So in Accounting, I had originally recorded that I had deposited the full amount that the customer provided in payment of the invoice...this was all well and good until I downloaded the bank data and tried to match transactions. MS Accounting refused to let me correlate the two bank transactions (original deposit plus credit) to the one customer payment. Finally, I edited the customer payment (which of course MS Accouting lamely forces me to void and re-create ... WTH Microsoft! ), and this time deposited the customer payment into the "Undeposited Funds" account. I then created a journal entry, where in one voucher, the Undeposited Funds account was credited for the amount that actually was recognized by the ATM, and the checking account debited, then a second voucher where Undeposited Funds was credited for the remaining $5, and then debited to the checking account. I shoved an explanation into the memo field to explain it for reference during tax time.
Has anyone else run across this, and what would you have done differently?
Thanks!
Tom
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