[QB4518]

Hello - When posting entries into a program such as QuickBooks.. how would I handle the following scenario: Setup is Vendor Income and Vendor Expenses. I have entries for a Vendor that has both registration refunds and bounced checks with bank fees. Are the registration refunds and bounced checks & bank fees posted under income where they automatically offset from the total income received? Or should these debits be posted as Vendor Expenses... where the bottom line calculated with show all credits received less all debits to give the bottom line total? I am not sure how to list these. Thank you.

[morgaine300]

I'm not even quite sure what you're saying. Since this is a vendor, does this mean that they are giving you a refund for something? And who is bouncing the checks? Did you bounce a check you wrote to them? And did they try to put it through again? Or do you owe them again, plus the fees?

(The only thing I can tell you is that since it's a vendor, it doesn't sound like anything would be going to any income account, even as a negative.)

[QB4518]

The vendors pay us to be included in events. The pay us a registration fee which is income to us. Sometimes we have too many vendors sending in registration fees for the spaces at the events so a few registration fees must be refunded to the vendor we can't accommodate.

Re bounced checks.. these have been a few vendors who paid the registration fee to be in our event but that check they issued to us bounced and incurred a bank serv fee in our acct as a result.

I needed to know how to handle these debits to post them as debits under the income line or post them as debits under the expenses line. Didn't know which is the correct place for these.

[morgaine300]

The bounced checks and the fees should debit into receivables. They owe you another check, including the fees. That would be the first step. If after some time you decide they're never going to pay it, write it off as bad debt. You shouldn't reverse it out of income, because you didn't earn any less just cause they bounced a check.

As for the registration fees, you could credit that back out of the income account. Now this is assuming that it happens after a not very long time and doesn't do anything to distort the income.