We have just received notice from our card processing company, that 3 transactions made in May were made on a stolen card. As the payments were made over the phone and not pin verified the card company has charged back the transactions.
How do you think we should record this for VAT purposes etc.?
Hi David,
I think you should create a credit note to write off the bad debt as shown on this page:
http://www.solaraccounts.co.uk/help/how-to-write-off-a-bad-debt.php
Then instead of allocating the credit to an outstanding invoice, record a 'refund payment' as described here:
http://www.solaraccounts.co.uk/help/how-to-pay-a-customer-refund.php
Finally you may need to record an extra 'chargeback fee'. Create an expense as follows, except allocate to 'Bank Fees':
http://www.solaraccounts.co.uk/help/how-to-record-an-expense.php
Cheers,
