How to categorize a received reimbursement?

4nthony

Hi,

My wife purchased N95 masks in bulk. She made the purchase on her company credit card. I categorized the purchase as a uniform expense.

As I was reconciling, I noticed there was a credit from a Zelle transaction a few days later and my wife told me half of the purchased masks were given to another colleague who then reimbursed the company for the masks. This person is not an employee.

I created an income account called "Reimbursements" to categorize the deposit, but I'm not sure if this is the correct way as I don't think the Zelle deposit is considered income.

What's the correct way to categorize this deposit? Do I need to change the purchase (expense) as well?

Thank you!

Mikeg

@4nthony,
Should be categorized as a refund of an expense. Specifically in your case, Uniforms.