We received a debit notice from the bank regarding chargeback on multiple processing (credit card) transactions, what should i do in my accounting system?
submitted by justine

NotFinancialAdvice

Record the chargeback as a reduction in sales revenue and adjust the relevant receivables accordingly. You should also document the reason for the chargeback and update your bank reconciliation to reflect the reversal of funds. Ensure that your accounting entries accurately reflect the transaction reversal to maintain correct financial statements.

Schmedrious

When you get a debit notice for chargebacks, you need to create a journal entry to debit your sales or income account and credit your bank account to show the returned funds. Also, update your accounts receivable if you had recorded the sale earlier. Keep a record of the chargeback details for future reference and reconciliation.

Pittles

If there's a chargeback from the bank, I think I should record it as a negative adjustment in my sales or revenue account and reduce my cash or bank balance accordingly. I should also note the reason for the chargeback and make sure everything matches during bank reconciliation.

Tiffknee

When you get a debit notice for chargebacks, you probably need to subtract that amount from your sales and also reduce the bank balance in your system. Keep track of why it happened so you can explain it later. Those little notes are really helpful, because you won't always remember the circumstances after a few months. Your boss will appreciate the documentation.

tillycheese

If the bank sends a notice about chargebacks, you should update your accounting records to show that some money was taken back, maybe by decreasing sales or income and adjusting my bank account balance. It's also good to keep a note of why it happened for future audits and whatnot.