Hi,
My business debit card was accidentally charged four times while making bus journeys, resulting in four payments to TFL in my records.
I have tagged these as General Purchases, and in the Description have added “Accidental Charges on Card”.
Is this an acceptable way to Tag these?
Many thanks,
Philip
Hi @pjarmstrong
I’m assuming that as these were charged in error, the charge will be reversed? In that case, as per a post in your previous topic, you could delete both transactions for a nill result.
However, ‘General Purchases’ is more of a things you buy to resell category (for example, stock). If you did want to keep a record of it through a purchase invoice, I would create it to the correct category (which I’d guess is Travelling or similar), and show it as a refund.
As an example, let’s say I was charged £10.00, but £40.00 was taken off my card.
I have the invoice for £10.00:
I’d tag the £40.00 as a payment to supplier, but “pay down multiple”:
This tags £10 to the invoice, and leaves the balance on their account:
Then view the payment (Either Purchases > All Payments, or find the supplier and select View > All Payments, and select ‘View Details’), you can then refund the balance:
I guess it depends on your preference - you may like to keep a trace of everything and know where everything is coming from and going, but for others, it’s just overcomplicating it.
p.s. I’m not an accountant
Hi - thanks for getting back to me so quickly.
Unfortunately the charges cannot be refunded (too much time has passed).
I see your point, General Purchases is definitely not the correct tag to use.
Just to clarify, all 4 of the transactions (£1.45 each) were accidental.
Given this, do you mean that I should 1. Tag it as a payment to supplier, and then 2. Refund the payment? (the payment was never refunded and cannot be refunded by TFL- so do I need to send a refund from my personal account, or just label it as refunded?)
Thanks for your advice.
Philip
If they’re not a valid business expense then just tag them as transfers to the proprietor drawings account (if you’re self-employed) or Director’s Loan (if you’re a ltd company), they shouldn’t be recorded as purchases in QuickFile at all. It sounds like you’ve accidentally used your business rather than personal card when paying on the buses, so essentially you’ve withdrawn money from the business for personal use (and then immediately spent it on TfL, but that’s a personal purchase and no concern of QuickFile).
OK I will tag as drawings/Directors Loan.
Many thanks
Hi,
I have to agree they should be in your DLA, as they are unfortunately not business expenses.
Kind regards,
Chris
