CNA L&P - Deposits: How to record a reimbursement

How to record a reimbursement 

To record a reimbursement for an overpayment that was not a payroll over-payment you must use the same accounts which were used in the original transaction. For example, you owed your vendor $80 but wrote a check for $100, and the vendor has now sent a refund check.

The original transactions would have credited cash $100 and debited another account (usually an expense account) $100.

To reverse this transaction, create a deposit for the reimbursement amount which debits cash $20 and credits the original account that was used in the check for the amount of the reimbursement $20. 

Check credits cash           -100.00

Check debits exp               100.00


Deposit affects cash            20.00

Deposit affects exp            -20.00



When the money is reimbursed, the amount reduces expenses. 





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