Credit card - income vs expense

PeterB

I get soooo confused by my credit card account: when I put in a refund that was paid to my credit card, it takes my balance into the 'minus' zone, as opposed to adding it.

I have entered it as a deposit, and the amount is listed in green - why does it subtract it?

(Sorry if stoopid question...)

Barsin

Hey @PeterB

Credits and debits work differently for different types of accounts. When you put a refund onto your credit card, you're essentially paying the balance and decreasing this amount.

For example:

Balance = $0
I make a purchase for $100

Balance = + $100

I get a refund for $100 and another refund for $20
Balance = - $20

Hope this makes sense!

PeterB

Thanks, for replying, @Barsin - so to put it simply, it works in the opposite direction from the way a normal account works?

Barsin

Hey @PeterB

Technically Wave is following general accepted accounting principles (GAAP). Your account may display something differently however I know that some banks try to make it easier for people to read. In general accounting principles, this is typically how debits and credits work.

PeterB

@Barsin - much appreciated.

EricSkiller

OK makes sense but how do u categorize it the if it sees it as a income when i bought fuel for my vehicle as a expense?

JulianP

Hey there @EricSkiller !

If a transaction is recorded as a withdrawal or a deposit by mistake, you can head over to your Accounting > Transactions page, select the transaction in question and edit it accordingly.