Accounting for a direct debit payment fail and subsequent reversal

NicolatoNicolato Member Posts: 8

In my company's transactions, I have a direct debit payment that is shown leaving the bank account and then a 'reversal' showing the payment coming back into the account. How should I account for this? Do I need to make special new entries in the Table of Accounts - or are there existing entries that cover these kinds of transactions?

Comments

  • EnsignBellaRoEnsignBellaRo Member Posts: 28 ✭✭

    That'd depend on what that payment and that refund was for. Your expense would be categorized as whatever is the most appropriate for that particular expense, and your invoice would be categorized as "Refund for an Expense" in the same category.

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