How do I handle income that is refunded?
This article covers how to deal with income that needs to be refunded.
Named Donations Refunded
Where a named donation has been given, but subsequently gets refunded, this help guide article explains how to reconcile the donation refund, and how to account for refunding Gift Aid income (where applicable).
Invoiced Income Refunded
Where a customer who has been previously paid an invoice needs to be given a refund (e.g. return of a deposit), a customer credit note should be created and then paid back to the customer. See this help guide article for more information.
Other Income Refunds
For all other income that you need to refund, you should:
- Go ahead and repay the money.
You do NOT need to enter the income refund into ExpensePlus before making the payment.
The details of the repayment get entered at the point the outgoing bank transaction is reconciled.
Important: It's important not to process this outgoing amount as a purchase, because income refunds need to be recorded as negative income, rather than expenditure!
- When the outgoing transaction for the refund payment you made appears on your match transactions screen you need to:
- Select the transaction on the left-hand table,
- Click the + button to the right of the transaction,
- Select the Income Repayment option and enter the transaction details.
This will create a negative income transaction which will cancel out the original income recorded.
Typically, an income repayment should be coded to the same fund/category that the original income was allocated to.
To better understand the Bank Reconciliation module, please view the module overview video here.