How to balance a credit card reconciliation when there is a fraudulent charge on the statement
Adjust the statement balance reducing it by the amount of the fraudulent charge. Adjusting the balance eliminates the need to enter a charge that will be refunded by the credit card company.
The credit card statement balance is $10,000.
There is a fraudulent charge of $1,000 on the statement.
In order to reconcile you could enter $9,000 as the statement balance.
On the next credit card statement the company should have refunded the $1,000 (i.e. reduced the liability)
The next reconciliation should not require any adjustments to the statement balance.
Credit Card: How to reverse a charge or enter a refund
Credit Card Reconciliation Process
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