Have you been reimbursed for a credit card purchase?
Keep in mind that the bank charge related to the credit card already includes a credit note corresponding to an invoice. Therefore, as the transaction reflected in the purchase refund invoice is positive, you cannot reconcile the bank charge against the credit note.
Here is how to reconcile these transactions so that the accounting is correct.
Manage credit card purchase refunds
- Create a payment gateway and name it Bridge account
- Access the original purchase invoice from Expenses
- Click on Add payment
- In Amount, enter the total amount of the invoice
- In Account, select the payment gateway you've previously created (Bridge account)
- Back in the original purchase invoice, click on Convert
- Select Purchase refund
- Make sure the value in Total corresponds to the amount of the refund that you have received on your credit card
- Hit Save
- Back in the purchase refund, click on Add payment
- Make sure that the figure in Amount corresponds to the value of the refund
- In Account, choose the payment gateway Bridge account
- Hit Save
- Go to Banks and select the bank account that contains the transaction
- Click on Reconcile
- Select the transaction (the purchase made by credit card) from the Bank statement lines
- From Documents, on the right, click on + Match with new document
- Click on the Entry option
- From the second row under Details, select the book account associated with the payment gateway Bridge account
- Hit Create
After following these steps, the corresponding collection and payment operations will be executed, so that this specific transaction can be reconciled. In the same way, the balance of the book account of the payment gateway will be reset to zero.