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We have many customers who get charged by EFT and we enter a sales invoice for the total amount. The invoice gets entered and posted and the full amount gets paid to our account. A few days later one of the charges gets charged back. What would be the best or "correct" way to enter this transaction? Would it just be a bank transaction decrease adjustment or should it get entered in the Sales module?
It sounds like that should work. Please run through the outline below to see if you agree with $100 invoice and $5 fee as an example. If you have a test company set up, I would encourage you to key it in there, using a brand new checkbook ID and customer to verify you get what you want.
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key RM INVOICE $100, cr sales, dr AR, no affect on checkbook balance.
(sales acct $100)
Cust pays that,
key RM EFT CASH RECEIPT, cr AR to clear, debit cash $100, deposit increases checkbook balance. $100
(cash acct and checkbook bal tie at $100)
chargeback comes in $5
key Bank Rec DECREASE ADJ, debit sales (if reducing sales) or wherever you want, credit cash $5, checkbook balance -5
(cash acct and checkbook bal tie at $95)
(sales acct $95)
key RM debit memo, debit AR $5, credit sales again, no affect on checkbook balance.
(Sales acct back at $100)
cust pays that
key RM cash receipt, cr AR $5 to clear , debit cash $5, deposit increases checkbook balance $5
(cash acct and checkbook bal tie at $100)
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I am trying to help, but keep in mind, I am not an accounting professional so please consult your local CPA or Accounting professional on the accounts to use.
This is just a suggestion for you to review. Draw out your T-accounts and make sure you agree, and test it out.
Thanks
Cheryl
Just to make sure I fully understand, the finance charge would need to be entered along with a bank transaction decrease adjustment, right? So we would have the finance charge in Sales module reflect the increase in AR then a decrease adj in the Financial module to reflect the decrease in cash.
You can do a partial chargeback/dispute. The more evidence and information you provide the easier it will be for your credit card company to resolve your dispute fairly. Do you have an initial purchase agreement or receipt for all of the items? You can make a statement cross-referencing the items that were promised versus what was actually delivered and it would be on the vendor to prove that they delivered those specific items Kroger Schedule
Thank you for the additional information. If you want it to reflect as an increase in AR and charge it back to the customer, then I would suggest to go to Transactions | Sales | Transaction entry, and select the 'finance charge' or 'debit memo' type, and key it against the customer's account for the amount of the fee you are passing back. This will credit your misc income/bank fees account and debit A/R to create the receivable. Then when the customer pays you for this receivable, then you will enter that payment as a 'cash receipt' and apply it to the finance charge document. The cash receipt will clear the A/R and credit cash,
Hope that helps,
Cheryl
Microsoft Support
Thank you for the response. We are charging that fee back to the customer. We want it to reflect an increase in AR and a decrease in cash, but also show as a receivable for that customer. The confusion comes from not knowing what entries in the sales module transfer through to the financial module, and what entry type from which module will give us the desired outcome.
Hello,
This is an accounting question and not a product support question, so I would encourage you to consult your own local CPA/Accounting specialist for advice on how they want this to look on your books.
Typically, you can just enter it in Bank Rec as a decrease adjustment, unless you are charging that fee back to the customer. But I am not an accounting professional, so hopefully the community can help chime in here on they are handling this situation, but your local Accounting manager/CPA should be advising on how to handle that type of information that affects your books.
Regards,
Cheryl Waswick
Microsoft Dynamics GP Support
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