Depositing Refunds and Reimbursements to your Organization Accounts

Scenario 1:

Your group uses a Declining Balance Card to purchase tarps for an event. The card is linked to your group’s SBAC account, and you make the purchase at a local home improvement store. As it turns out, you only need half the tarps and you return the extras and receive a refund in cash.

Now you’re holding cash belonging to your organization – how does the refund make it back to your SBAC or Agency account?

Scenario 2:

You checked out a DB Card last week, and unfortunately the card information was still saved in your Paypal account when you bought a cute knitted hat from a vendor at Etsy. You didn’t mean for the transaction to end up on the wrong card, but nevertheless, you just got an email from the DB card admin saying “Why did you buy a hat from Etsy when the business purpose listed on your request was about paying a tournament registration fee?”

Oops, well, mistakes happen. The solution, of course, is to bring that repayment to the cashier’s window ASAP and make a deposit to return the funds to your organization’s account.

“Reduction of Expense” Deposits

The scenarios above can be solved by what the university calls a “Reduction of Expense” deposit. It is defined as a situation where you are depositing cash or a check that “reduces or repays an expense account”.

These special deposits aren’t really all that different from any other deposit you would make. Just choose “Reimbursement of Expense” for the Revenue Category on the deposit form, and enter the “Cost Center” (formerly known as a “budget code”) that needs to receive the reimbursement. You’ll want to be specific in the when entering a description on the “memo” line. For the examples above, you would enter “Cash refund for tarps purchased for [Name of Event]” or “Repayment of accidental personal purchase”.

In addition, make sure the expense meets these criteria:

  • Only one general ledger expense account is involved in the deposit (the expense was not split with another group or between different types of accounts.)
  • It occurs in the current fiscal year (our fiscal year begins July 1 and ends June 30.)