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?
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 $40 to the cashier’s window ASAP and make a deposit to return the funds to your organization’s account.
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. What sets them apart is that you’ll need to use the same account numbers you used to make the original purchase. To find the correct account numbers, you’ll probably need to ask for help from the person who assisted with the original payment, whether it’s the DB card admin, your advisor or treasurer (in the case of refunds from invoices paid by check) or even your SBAC representative.
Once you know what account numbers you’ll be using for your deposit, make sure the expense meets these criteria: