I suppose my question here is more about internal controls as well. We're expecting a refund from a February transaction, but don't know when the refund will appear on the statement. We have about 200+ transactions per credit card statement across 15 different credit cards. What is the recommended way to keep track of this in a multi-person department?
And, would you hold the expected amount in an accounts receivable account until the credit appears?
I made some comments regarding internal control in the other thread.
The way I would handle this is that each credit card holder is given an envelope with provision for expense detail and allocations printed on it. The card holder provides the required data, signed off by the department manager and inserts the vouchers in the envelope. This data is then used to allocate the charges in the same manner as a cash payments journal and then archieved.In this way the user is responsible to reconcile the individual credit card and provide vouchers for transactions. I expect that the monthly balance on your credit card facility is automatically cleared by your bank each month debiting your main account
As far as the refund is concerned you could raise an invoice for it on the supplier and manage through accounts receivable or you could leave it as an unallocated balance in your credit card bank account and it will appear on your reconciliation reminding you to follow it up. As I said previously you could debit this item to a suspense account pending the refund