Suggestions For Handling A Refund From Last Year?

joel's Avatar


09 Jun, 2020 10:06 PM

- I started using MD on January 1, 2020, no prior information was entered
- I had a cruise scheduled for March 2020 that was canceled due to COVID
- Cruise was paid for in 2019
- Credit card credit (refund) has just been received
- no 2019 data to adjust/post against
- since it's a credit card credit, it will automatically reduce current charges
- I still want to show payment of cc charges with current assets
- I pay this credit card from my checking account in MD (Transfer)
- it isn't actually income, would rather not list amount as a miscellaneous type of income 2020 income

How best to handle, show this cc credit from activity in 2019?

Ideas .... and, thanks!

  1. 1 Posted by mhoggie on 09 Jun, 2020 11:05 PM

    mhoggie's Avatar

    just a user,

    Just create another income category. I've done that for rebates.

  2. 2 Posted by joel on 09 Jun, 2020 11:38 PM

    joel's Avatar

    Thanks, for the suggestion, but I was trying to see if there was a way to do it without having to create another income category. It really isn't income in my opinion, but a refund of an expense from a prior year.

  3. 3 Posted by dwg on 09 Jun, 2020 11:54 PM

    dwg's Avatar

    I'm a fellow user.

    I understand that it is a negative expense not an income (a subtle difference) but what do you actually want to show in your accounts? If the goal was to show a transfer from your Cheque account for the months expenses then you would need to do two transfers in Moneydance one for the refund crediting the cheque account and then one for the debit for the actual credit card payments for the month, note that this would not reflect your bank statements in any way.

    Or is your objective something different?

  4. joel closed this discussion on 10 Jun, 2020 11:13 AM.

  5. joel re-opened this discussion on 10 Jun, 2020 11:13 AM

  6. 4 Posted by joel on 10 Jun, 2020 11:14 AM

    joel's Avatar

    Thanks, for the suggestions.

  7. joel closed this discussion on 10 Jun, 2020 11:14 AM.

  8. sprimost re-opened this discussion on 10 Jun, 2020 08:01 PM

  9. 5 Posted by sprimost on 10 Jun, 2020 08:01 PM

    sprimost's Avatar

    From: sprimost (not MD support)

    I am assuming you put a starting balance in the credit card account when
    you started using MD (either positive or negative). A credit/refund to
    the credit card balance is not income, but actually a reduction in
    expense within the credit card account, so using a contra account (or
    category) is not really solving the problem. In this case, it really is
    an effect to your budgeted amount to "vacation" (category that is
    "funded" by "income"or whatever you use to initially pay for the
    vacation it.

    IMHO, you should handle this as a reduction of a 2019 expense as a
    transaction incurred in the 2020 Fiscal year, if your Fiscal year
    started on Jan 2020 using the  Cash Accounting Method. Accept the fact
    that what was spent in 2019 is 2019 expenses. So the "refund" is not
    relevant for 2019 as per your allocation of money to different accounts.
    This is like getting a tax over-paid (or under-paid) taxes
    in 2019 but the accounting for the over payment or under payment is
    "realized" in 2020 with either a refund into your checking or savings
    account (or payment from your checking account. Thus, enter a
    transaction for the refund of as "payment" and add it back (assign in
    category field) to the "Vacation" category.

    Using a contra-account for this really makes a mess of things,
    especially when handling budgets

    Sorry for being long-winded, but hope this helps and gives you some
    background information on how MD handles this.


  10. joel closed this discussion on 14 Jun, 2020 11:28 AM.

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