Refunds

Owned by Stephen Juliano (Unlicensed)
Last updated: Oct 18, 2022 by Stephen Juliano
3 min read

Table of Contents

Overview

Refunds to a customer can be performed using the Customer Refund screen on the AR menu.  Refunds can be issued to a customer when the customer’s account has a credit balance or there are un-used sales order deposits.  The Customer Refund screen has several options as to how the money is to be refunded to the customer.  The amount of the refund can be any dollar amount up to the credit balance on the customer’s account.

AR > Refunds

Quick Guide

  1. Enter Customer

    1. Enter # or hit F9 to find it

  2. Enter Refund Date

    1. Defaults to today

  3. Enter Reference

    1. This will be the description of the transaction on the Customer’s account

  4. (Optional) Refund through POS

    1. Use Refund through POS checkbox to run the refund through a register

  5. Enter Refund Amount

    1. Enter $ next to the document(s)/deposit(s) you want to refund

  6. Enter Terms (Names will vary)

    1. Check - Will create a document in AP to process a check for the Customer

      1. Requires Check #

    2. Cash - Will pull out of Cash on Hand

    3. CreditCards - Will create the transaction in the bank

  7. Process Transaction

    1. Hit the Lightning Bolt

Screen Details

  • Branch - This dropdown will select the branch. Defaults based on Customer

  • Customer - Enter the customer number and each of the customer’s open credits and un-used deposits is displayed.

  • Open credits and Deposits - Enter the amount of refund for each of the open documents.  Then choose to issue the refund to the customer’s credit card or via A/P check by choosing the appropriate terms.

Note: If the customer has any open invoices, debit memos, or sales orders, a warning is displayed.  In many cases you would not refund money to a customer if they have open invoices that need to be paid or sales orders which will generate invoices.

  • Refund All - You may choose to issue a refund for all open credits and un-unused deposits by simply clicking on the Refund All button. 

  • Clear all – To clear all refund amounts and start over you only need to press the clear all icon.

  • Terms – There are multiple terms to choose from.  If the refund is to be by A/P check, you may choose the check run date by double-clicking on the check run field that appears when you enter the check run option and choose from a list of check runs.

When all of the information is correct, click on the process button on the toolbar.

Note: If you have chosen to issue the refund as a check, a vendor is created from the customer data and a new A/P voucher is created and placed on the check run shown on the screen.  The vendor number will not necessarily be the same as the customer number.

Note:  If the refund is via credit card, a withdrawal (check) entry is made to the selected bank account.  Accounts receivable is debited and cash is credited for the amount of the refund via the Banking module.  The screen will also validate the credit card using the same method as the POS Sales screen.

If any part of a sales order deposit is being refunded, that amount is first converted from the deposit to unapplied cash.  A refund is entered on the customer’s account and is applied to each of the documents for which a refund amount was entered.  The G/L entries made are determined by the source of the refund.  If you are refunding a sales order deposit, the deposit is converted to unapplied cash which results in a credit to A/R and a debit to Customer Deposits.  If you are refunding unapplied cash or an open credit memo, there entries made are simple the credit to A/P and a debit to A/R

After a refund has been processed, the refunds can be views on the Account Inquiry screen on the Refunds tab. Refunds are also printed as part of the Account Activity report.