How do you enter a refund to a credit card if you paid off the balance at the end of the month?
I'm confused how to enter a credit card refund if I paid the bill in full at the end of the month. For example, I bought a USB hub for $17 on May 4. Then I paid the credit card bill on May 12 . However, about two weeks later the USB hub stopped working, so I sent it back to Amazon for a refund on May 20. Now I'm not sure how to enter this refund. I've read the help articles and watched the help video a few times, but for some reason, I'm not understanding how to enter the refund. I sure don't want to make a mess of things!!
I sure do appreciate any help!! Thanks so much for your time !
Sincerely, Donna C
As Herman indicates, the return transaction uses the same category as the outflow. This will reduce the CC Payment category (as you hardly need to pay that again).
One thing I'm confused about though, you said you paid the bill on May 12. However, that payment would have been for the statement generated around April 14. The USB hub purchase wouldn't even be on that bill. The hub will be billed on May 14(ish) and due on June 12.
The transaction itself is straightforward, see above. The impact on the budget can be more tricky, and it all hinges on the CC Payment category Available.
* If that is green (or $0), you're all good. Nothing else to do.
* If it's red, you'd need to fix that. A lot of people don't understand why a refund should result in them ultimately lowering a category.
So, green or red? 🙂