Refunds to Customers using Checks or Credit Cards

Credits and Refunds to Customers

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Solution Number: 24756

Category: General

Product: Cash Receipts

Creation Date: May 24, 2006 02:32 PM

Summary: Q: How to refund a credit card for a credit memo using  

Protobase/Element/WorldPay

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Solution Text:

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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.

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Solution Number: 384

Category: Accounting

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

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Solution Text:

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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

follows:

A/R             DEBIT

REFUND ACCT        CREDIT

The posting for the quick check in AP is:

REFUND ACCT        DEBIT

CASH            CREDIT

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?

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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 =================================================================

Solution Text:

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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.