Re: [GNC] Reimbursement for fraud

[Harold Hallikainen via gnucash-user]

On Sun, June 14, 2026 10:20 am, Robert Putman wrote:
> I had a check to a credit card company that was washed and cashed by
> someone else.  We reported it as fraud and was eventually repaid.  How do
> I
> record this in GnuCash so that it doesn't appear as income but that will
> balance in GnuCash?  Sorry, I am not an accountant and don't know this
> stuff. Thanks,
> Bob

Fun stuff! I'm thinking it is something like this:

1. Original payment
Debit credit card liability, credit cash

2. Replacement payment
Debit credit card liability, credit cash

3. Reimbursement
Debit cash, credit credit card liability

The second payment might end up showing a negative credit card balance. If
you don't like that, the second and third transactions could be

2. Debit accounts receivable, credit cash
The bank owes you this amount of money

3. Debit cash, credit accounts receivable
The bank has paid you the amount owed.

Another approach might be to have an account called Fraud Expense. Steps
become:

2. Replacement payment
Debit Fraud Expense, credit cash

3. Reimbursement
Debit cash, credit Fraud Expense

The Fraud Expense account could just be miscellaneous expense as long as
the expense and reimbursement happen within the same accounting period.

Good luck!

Harold




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