[Mr_C]

So you get a nice payment from a network and you put it down on the books. You've set things up so that the amounts are broken down by merchant like so:

November Income From Network XYZ (for October)
Merchant A: $100
Merchant B: $200
Merchant C: $300

Two months later, merchant C deducts a payment from your current balance for a reversal on a sale from October.

How have you set up your books to handle this?

I'm in up to my head, learning both Quickbooks and affiliate marketing. :)

[Mr_C]

The answer from an CGA friend, if anyone is interested, is you've probably created a class or GL code for recording credits (income) for a particular merchant. To record reversals you create a similar class or GL code for the same merchant and also use it primarily to record credit (income) but using negative numbers instead. Do not record this as a debit since it's not an expenditure.

Hope this helps someone in the same situation (doing their own bookkeeping).

[purdue512]

I'm not sure i see the difference between using INCOME with a negative number and using EXPENSE with a positive number.

Taxes are still based on profits. Either way it comes out the same. Are you worried that revenues will be overstated?