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  1. #1
    Full Member
    Join Date
    October 30th, 2007
    Location
    Toronto
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    217
    Question about reversals and bookkeeping
    So you get a nice payment from a network and you put it down on the books. You've set things up so that the amounts are broken down by merchant like so:

    November Income From Network XYZ (for October)
    Merchant A: $100
    Merchant B: $200
    Merchant C: $300

    Two months later, merchant C deducts a payment from your current balance for a reversal on a sale from October.

    How have you set up your books to handle this?

    I'm in up to my head, learning both Quickbooks and affiliate marketing.

  2. #2
    Full Member
    Join Date
    October 30th, 2007
    Location
    Toronto
    Posts
    217
    The answer from an CGA friend, if anyone is interested, is you've probably created a class or GL code for recording credits (income) for a particular merchant. To record reversals you create a similar class or GL code for the same merchant and also use it primarily to record credit (income) but using negative numbers instead. Do not record this as a debit since it's not an expenditure.

    Hope this helps someone in the same situation (doing their own bookkeeping).

  3. #3
    Member
    Join Date
    March 16th, 2007
    Posts
    53
    I'm not sure i see the difference between using INCOME with a negative number and using EXPENSE with a positive number.

    Taxes are still based on profits. Either way it comes out the same. Are you worried that revenues will be overstated?

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