Microsoft money question (Refund amount)?

Question

Hello,
I have a question about how to handle refunds in MS money.
e.g. I bought few items for $200 from some store.that transaction shows up in my ms money. Next week, i return around $85 worth of items. Now what category should i put this refund under? MS money shows as an expense, i just want to somehow seperate this from income because this is really not an income.
any advice?

thanks

Answer 1

You would post this as a credit to the $200.00 expense. In other words you purchase items for 200, and that goes as an expense against your monthly income. You take items back and receive a refund from the store, which makes it 200-85, leaving a total of 115 real expenditure. So, you do the opposite of the transaction when you recorded the amount as a deduction of your money, eg: expense, so you have to credit that amount back. When you take money out it is a debit, just like when you use your debit card at a bank or store, and if a refund is given against that card you receive a credit back into your account. This is that same principal.

I use QuickBooks Pro, but MS Money works the same, all accounting software works on the same prinicipals of accounting.

So, I am not familiar with MS Money format, but am with QuickBooks. But, as the accounting prinicpal is exactly the same regardless of which program you use, just credit that amount against the original expense, which then reduces the amount to the rightful $115.00. If there isn't a form which allows you to do this within MS Money, you will have to locate the method of doing an miscellanious transaction. I would not wish to do it this way as it is not properly tracked against the original purchase though. So, with that in mind there has to be a simular method in MS Money as there is in Quickbooks to place a credit directly against the orginal purchase.

Sorry I am not more familiar with MS Money as to be more of a help. If need, look in the Help files and find how to place a credit against an original expenditure. This is simular to paying a monthly bill and getting a refund in the mail because either you miscalculated how much to send, or the company miscallculated how much to bill you. Just remember this is not income in, it is only income against an expense. So, don't put it in any income earned or miscellanous income in. It has to be in the expense department as a credit against that purchase, or a miscellanous credit against all expenses in general. See?

Hope this helps, good luck and have a nice day.