How to enter returned merchandise?

Discussion in 'Microsoft Money' started by Brett, Oct 4, 2003.

  1. Brett

    Brett Guest

    Consider that I buy a radio from Wal-Mart and enter it as:

    Payee: Wal-Mart $35.00
    Category: Electronics (expense)

    During the same month, I bring the radio back for a full refund. I make the
    following journal entry:

    Payee: Wal-Mart $35.00
    Category: Other Income: Merchandise Returne (income)

    When I run the monthly income/expense report, the $35.00 is treated as an
    expense and also appears with income. If I'd like to view only expenses or
    income for the month, the report will be skewed. I could manually subtract
    out the $35.00 but that becomes cumbersome with more similar transactions.
    Is there a way to have these types of entries (purchase and return occuring
    within the same month) disappear on expense and income reports since they
    are irrelevant to the view I want?

    Brett, Oct 4, 2003
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  2. You can record the return with the Electronics (expense) category
    and accept the warning.
    Cal Learner-- MVP, Oct 4, 2003
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  3. Brett

    Susan Guest

    I don't consider returned merchandise income, so I handle
    this by setting up a category called "Remimbursable
    Expense." When I realize that I am going to return an
    item or if I know I will get a rebate I post the amount
    of the return or rebate to Reimbursable Expense (instead
    of whatever I would normally catagorize the purchase).
    Then when I receive the credit or the rebate, I post it
    to the bank account and reverse it out of Reimbursable
    Expense. This is useful if you do alot of rebates because
    you can track what has been received.

    If you aren't interested in tracking, you can simply
    enter the the entire purchase to the appropriate expense
    category and then reverse it when you post the credit.
    (The category is used when the purchase is made and then
    when the deposit or credit is made to the bank or credit
    card account. This will reverse the original entry.)

    Hope this helps.
    Susan, Oct 4, 2003
  4. Brett

    Brett Guest

    This will credit to the expense category?

    How will that appear in the report - debit then credit resulting in a null
    change on total expenses for that month?

    Brett, Oct 4, 2003
  5. Brett

    Brett Guest

    I don't understand what you mean by reverse. Are you using an income or
    expense category when you reverse?

    Brett, Oct 4, 2003
  6. If you don't like it, change it back.
    Cal Learner-- MVP, Oct 4, 2003
  7. Sorry that was unclear. All I mean is that when you purchase the item, you
    record it in the checking or credit card account with a certain category as
    a withdrawal or charge. When you return the item, you again record it in the
    same account using the same category as a deposit or credit. The effect is
    to "reverse" the original transaction.

    In this scenario, you never use an income category at all.

    Remember that the categories are there for your use to provide you with
    information. You can set up the categories to be as individualized as you
    like and use them in a way that gives you the information you need. Money
    will probably pop up a dialog box asking if you are sure you want to use an
    expense category for a deposit (or credit) and you will say "Yes!" You don't
    want the return to show as income and you are right, it isn't income. It is
    more of a "negative expense" so to speak. So, your record will show that you
    had an expense and then that expense was "reversed," so your total expenses
    for the period will be correct.
    Susan Jackson, Oct 4, 2003
  8. Brett


    There are many companies interested in our track consumer behavior. Recently it was revealed that Apple and Android track the GPS locations of users in some versions of the operating system. There are vehicles which are installed in gps car tracking to always be possible to know what their position,not only in the case of auto theft. There are special applications for gpsdevices store, useful for monitoring the location of all devices
    , Nov 27, 2012
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