Frauduelent Credit Card transactions

Rosie
Rosie Member Posts: 118 ✭✭
edited August 2018 in Reckon Accounts (Desktop)
Hi everyone,

We had some fraudulent transactions on a business credit card in June. They are likely to be refunded by the bank but the refund will come in the next financial year. If it all occurred in the same financial year I would use a contra expense account to deal with them but as they are over two financial years I am wondering what would be the best way to treat them. I thought I could set up a Balance Sheet code and pop the outgoings in there for now and then  when the refunds come in they can be recorded against this account. Interested to hear how others would deal with this.

Comments

  • John Gibson
    John Gibson Accredited Partner Posts: 47 Accredited Partner Accredited Partner
    edited July 2018
    Yes - set up an 'Other Debtors' (or some other name) current asset type account and record (or reallocate) the fraudulent payments to that - then when refunded allocated the deposits to offset......