6.3. Entering Payments
<<< Prev | Chapter 6. Managing Credit Cards | Next >>>

## 6.3. Entering Payments

Most payments to your credit card bill are entered as transfers from a bank account to the credit card account. When you pay the monthly bill, you are withdrawing money from a bank account to pay down the credit card balance. This transaction decreases both your bank account balance and the amount of credit card debt you owe.

When you return a purchase, you receive a refund on your credit card. This is another type of payment in that it decreases the amount of credit card debt you owe. If you recorded the original purchase transaction as a transfer from the credit card account to the expense, you now simply reverse that transaction: transfer the money back from the expense to the credit card account. This transaction decreases both the expense account balance and the credit card account balance. For example, if you originally recorded a credit card purchase of clothing, the transaction is a transfer from the credit card account to the clothing expense account. If you then return that clothing for a refund, you simply transfer the money back from the clothing expense account to the credit card account.

| Note
If you did not record the original purchase because you are not tracking credit card purchases, then you do not need to record the refund.

<<< Prev | Home | Next >>>
6.2. Entering Charges | Up | 6.4. Putting It All Together