How to Apply a Reimbursement to an Obligation

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There may be times when you need to reimburse someone in your organization, but instead of receiving payment, they want to apply it to an amount they owe. 

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To do this, we’ll enter a withdrawal in the bank register. 

In this example, we need to reimburse Betty and Archie Andrews $65.00 for the camping trip supplies they purchased. Instead of receiving payment, they want the amount applied to their child’s camping trip fees. 

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Notice that there are two splits in this withdrawal. 

The first split is applied to the Camping Trip Supplies budget category and entered as a positive $65.00.

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The second split is assigned to the Camping Trip Fees budget category and applied to Betty and Archie’s contact record for the camping trip fees. This split is entered as a negative $65.00. 

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The net amount of the transaction is $0.00, which is correct since no money is actually being withdrawn from the bank account. 

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Now let’s see how this appears on the Treasurer’s Report. 

You see that $65.00 in expenses has been recorded in the Camping Trip Supplies category. 

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And $65.00 in income has been recorded in the Camping Trip Fees category. 

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Now let’s look at Betty and Archie’s contact record. 

You can see they now have just ten dollars remaining to pay toward camping trip fees after the reimbursement was applied. 

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And that’s how to apply a reimbursement to an obligation in MoneyMinder. 

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