How does one correct an incorrect payment?

  • Thread starter Jason Rothstein
  • Start date

J

Jason Rothstein

Here's what I am trying to figure out how to correct:

I'm setup with auto-debit with my apartment building. This month, they were
only supposed to withdraw $400 for rent, but accidentally withdrew $1100.
They wrote me a check as a refund in the amount of $700. Via the auto-sync
with my bank, MS Money 2006 downloaded both transactions. I could mark the
$1100 dollars as "rent expense", and the $700 as "other income", but this
wouldn't really be correct, as I didn't really pay that much for rent, and
the reimbursement isn't really income. So how do I correct this?

Thanks,

Jason
 
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C

Cal Learner-- MVP

Here's what I am trying to figure out how to correct:

I'm setup with auto-debit with my apartment building. This month, they were
only supposed to withdraw $400 for rent, but accidentally withdrew $1100.
They wrote me a check as a refund in the amount of $700. Via the auto-sync
with my bank, MS Money 2006 downloaded both transactions. I could mark the
$1100 dollars as "rent expense", and the $700 as "other income", but this
wouldn't really be correct, as I didn't really pay that much for rent, and
the reimbursement isn't really income. So how do I correct this?
You could make the Category a Split, with $400 for rent, and $700
with no category.

Then on the $700 refund, you could leave the category blank.

Alternatively, use perhaps a Refund category on the refund, and on
the split payment both. Expect a warning. And it could affect some
reports adversely if you don't customize the report to include both
expense and income categories.
 
M

Mike

I'd categorize all the transacations as expense: rent. At the end of
the month you'd end up with a net of $400 rent expnese with no
uncategorized expenses. You can always include a note in the memo
section so you can remember what the heck happened when you look at it
next year.

Alternatively, you can take the $1100 transaction and split it: $400
to rent, $700 transfer to an asset account. For the $700 refund
check, it would be a transfer back from the asset account. I set up
an asset account for reimbursable job expense... when I charge
something for work, I count it as a transfer to the asset account.
And, when I get reimbursed, I count it as a transfer out of the asset
account. It never counts as an "expense", and you're tracking what's
going on.
 
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C

Cindy Conover

Jason,

Just mark the $700 credit as a rent expense. Money my say that it is not an
expense (just ignore that). This way all of your reports will still be
correct.
 

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