Modules»Accounts Receivable»Refund a Customer Overpayment …
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Last modified on 5/4/2017 5:17 PM by User.

Refund a Customer Overpayment (by check)

The steps involved in this process relate to two specific situations.

1. Customer has a credit balance due to overpayment, credit memo or deposit, and would like a refund by check.

Go to:

  • Accounts Payable (Module 3)
    • Voucher Entry and Editing (Task 1)
      • Enter (ADD) New Transaction (Sub-task 1) Note: use vendor #99999 (for miscellaneous) or the vendor #, if the customer is also a vendor.
        • Distribute the amount to a refund or miscellaneous GL account number (make note of the GL account number as it will be used in the next step).  
        • Post and print the refund check.
  • Proceed to Accounts Receivable (Module 2)
    • Sales Entry and Editing (Task 1)
      • Enter a New Sales Record (Sub-task 1)
        • Create and post a debit memo for the customer, making note of the following:
          • Use an invoice number that is outside the normal invoice numbers assigned by the system….make note of the ‘invoice’ number.
          • On line #5, use Sale Type = 5 for Debit Memo.
          • On line #9, enter amount to be refunded
          • On line #15, use the applicable state tax flag from the table.
          • On lines #20 through 25 use the applicable zone tax & amount.
          • Distribute to the same GL account number used in Accounts Payable.
          • Post the Debit Memo.
          • Note:  line 15 and lines 20 through 25 on the debit memo should be Non-taxable.
  • Go to Customer Inquiry (Task 27 in AR module) and apply the overpayments/credits/deposits to the debit memo.



2. Retail/Cash Customer is to be issued a credit and would like a refund by check.

  • Order Processing (Module 6)
    • Order Entry and Editing (Task 1)
      • Enter New/Change Existing Order (Sub-task 1)
        • Trx Type = 3 (Credit Memo)
        • On the Collection Screen enter the balance due to the customer in the check field - #12 (this should be the same amount as the check that will be issued in AP).  Put a “Cash/Check Paid Out” slip in the drawer for this amount.  The Daily Teller Checkout report (from Task 11 in O/E module) will show the check total under by this amount.
  • Proceed to Accounts Payable (Module 3)
    • Voucher Entry and Editing (Task 1)
      • Enter (ADD) New Transaction (Sub-task 1)
        • Issue a check to the customer and distribute the amount to a refund or miscellaneous GL account number.
  • Then AFTER sales are posted from the Invoiced Order Holding File (Task 2 in O/E module) into Accounts Receivable Sales Entry & Editing (Task 1), the system automatically creates a zero debit memo.  The credit memo and the check refund will automatically be applied to the zero debit memo.  While the cash/checks/credit cards are still in A/R, Cash Receipts Entry & Editing (Task 1), go to:
    • Accounts Receivable (Module 2)
      • Cash Entry and Editing (Task 2)
        • Enter New Cash Record (Sub-task 1)
          • Enter Lines as follows (listed below are the important fields):
            • Line #2: Trx Type (enter a misc. type - 7 or 8)
            • Line #3: Customer #
            • Line #14: GL acct # (use same GL # as used in AP)
            • Line #15: GL acct $ (enter the amount of the refund - use a positive dollar amount)
        • On the Cash edit & posting the “Total amount received” should reflect the deposit plus credit cards.  The “Total change to A/R” is the amount that must be used to balance Accounts Receivable.