How to handle refunds

I am new to 22seven and am not sure how to handle the following:

During a recent trip, I rented a car and also paid for a plane ticket for a relative. Afterward, the Rental company refunded the deposit and the relative paid for the plane ticket.

The two expenses were logged under group Day to Day and category Holidays & Travel. The refunds were then logged under Income and Holidays & Travel.

The problem is that in Budget view I have to run up and down between the groups to get a real view of the Holidays & Travel category as the refunds should not really reflect in this budget category.

I am not sure how to handle this simply. It also does not seem possible to conflate the groups.

Regards

Neels

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Comments

3 comments
  • Hi Neels,

    Welcome to 22seven!

    We suggest categorising the expense transactions for the car rental and the plane ticket into the Transfer spending group. You can keep them in the Holidays & Travel category. Similarly, you can categorise the refunds (income transactions) in the Transfer spending group and Holidays & Travel category.

    Transactions that are in the Transfer spending group won't count towards your totals and artificially inflate them. This means that you'll essentially net the expenses and income off against one another and your budget totals should look a lot more accurate. You can find your transfers right at the bottom of your Budget tab in a separate section called "You have x transfers."

    Another tip for the future: you can also split transactions into multiple parts and categorise each part into its own spending group and category. If you ever pay for something and a portion of that expense is refunded, you can split the expense into two parts and categorise the refunded portion into the Transfer spending group. When you categorise the refund (income transaction) into the Transfer spending group as well, only the remaining split of the expense transaction will count towards any of your totals.

    I hope this makes sense! Shout if you have any other questions :)

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  • Makes total sense. I just dealt with refunds this way after reading your tip. 

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  • Hi Moeketsi,

    Glad to hear :)

    Have a fantastic Sunday and shout if you have any other questions.

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