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Refunds to Customers using Checks or Credit Cards
Credits and Refunds to Customers
Solution Number: 24756
Product: Cash Receipts
Creation Date: May 24, 2006 02:32 PM
Summary: Q: How to refund a credit card for a credit memo using
If you have a credit memo in Accounts Receivable and you would
like to credit the customers credit card (by using
WorldPay/Vantiv/Element ) you will need to take the following steps.
You will need to access the Cash Receipts window (A/R Module >
Transaction > Cash Receipts). You will need to select the credit card that you are refunding and enter in a negative amount in the
"Amount Field" for that customer. Then you will need to select
the credit memo that you would like to refund.
After you select the credit memo, then you will need to enter the
credit card information under the Credit Card # field and you
need to enter in the expiration date.
You will notice that the amount to apply field is $0.00. Then
save the record.
The system will use WorldPay/Protobase/Element/Vantiv to process out and credit
the credit card.
Solution Number: 384
Product: Accounts Receivable
Creation Date: Sep 30, 1998 05:58 PM
Summary: Q: How to credit/refund or cut a check for a customer
with credit balance in AR
Q: How to refund or cut a check to a customer who has a credit
balance in Accounts Receivable?
1. Set up an intermediary general ledger account such as
'Refunds Payable', or 'Exchange Account'. This is essentially a
Suspense clearing account (type = current liability). This account will
be used to transfer funds between the AR and AP modules and
postings will wash out in this account.
2. Create AR debit memo for the credit balance amount (revenue
acct = Refunds Payable/Exchange acct)
3. Create the customer as a vendor by entering the customer ID
in the vendor maintenance screen. Save the window, and the
customer will now also exist as a vendor.
4. Create AP voucher for the customer using the refunds
payable/exhange account as the purchase acct.
5. Cut Quick Check or use Single Vendor check printing to print the check.
6. Apply the debit memo created in step 2, to the credit balance in AR in Accounts receivable, Cash Receipts.
The posting that is done when the debit memo is done in AR is as
REFUND ACCT CREDIT
The posting for the quick check in AP is:
REFUND ACCT DEBIT
Since these two transactions wash out the refund account, the net effect is a debit to AR and a credit to cash.
Note: see solution 7801 for
Q: How to pay off AP balance due with AR credit balance for
customer = vendor?
Solution Number: 3209
Category: Order Processing
Product: RMA Entry
Creation Date: Sep 21, 2000 12:15 PM
Summary: Q: How to Process a Credit Card refund for an RMA =================================================================
When Electronic Payment Process is enabled (i.e., you enter a
credit card for your payment type on the Remittance tab), then
the option to Receive All and Create Invoice is automatically
selected; check the Ret’n Balance checkbox. You do not have to go into the RMA Receipts window to
receive the returned material. Otherwise, the process is the
same as entering a normal RMA.