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Processing a refund of expenses

In Mclowd you will need to create a journal entry to enter the refund of expenses. We will use an example where we are going to assume that the Auditor fee will be refunded $100 direct to the SMSF bank account.

To access journal entries, please select “MORE” from the Menu and then select “Journal Entries“.

 

 

You will be presented with the following screen:

 

Please select “ADD NEW JOURNAL ENTRY“.

The Journal Entry screen will be displayed.

The data entered above is based on our Refund of Audit Fee example.

Next:

  • Enter the Date of the transaction (date of refund).
  • Enter the Name for the transaction – e.g. “Refund of Audit Fee”.
  • The Reference number is input automatically by Mclowd.
  • In the first row, under Member Account/Fund, please select the Fund or Member for both the debit and credit part of the journal entry. In this example we have selected the Fund as the Audit Fee relates to all members. If the refunded expense relates to a particular member, then select that member.
  • For the Debit Entry, under Account, select the Bank to be debited. In this example, it is the bank account titled CSF.
    • Enter a Description for this part of the journal entry.
    • Enter the amount of refund. In our example it is $100.
  • For the credit entry, under Account, select the expense type relevant to the transaction. You may need to scroll down to the list of expenses which starts at $5-$1,000. In our example, this would be $5-$1,110 Approved Auditor fee.
    • Enter a Description for this part of the journal entry.
    • Enter the amount of refund. In our example it is $100.
  • Check that the Debits and Credits balance. If not, you need to correct this.
  • Select ADD JOURNAL ENTRY if you are happy with the journal entry.

You will then see the Journal Entries screen.

The result of this journal entry is that it will increase the bank balance of the SMSF bank account by $100 and reduce the Approved Audit Fee expense by $100.