17 Refund Payments
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Refund Payments
A Refund is created in order to receive products back from customers to give them money back or credit their account. A Refund works just as a negative Invoice and is a 'posting financial transaction' (it will 'touch' your accounts in the system).
Refunds must contain products (that in ERP, can be items, groups, services, projects, etc.). If the product is an Inventory Type or a Group item, the stock level will increase after a Refund is saved.
You can refund a customer by crediting their account, or by refunding them with the same method that they paid you, i.e. cash, credit card etc.
How do you apply a refund to an invoice?
To Create a Refund
Select the 'Refund' button displayed within the Sales Tab
Select a 'Customer' from the drop-down list
You will notice that the Customer's Address will flow through from the Customer's Card into the Refund form
The following fields in the Refund form will be populated from the Customer's Card:
- Refund To - Department - Terms
NB: You can manually change any of the above fields if you wish
If necessary, change the Department using the drop-down list. The accounting figures of this Refund will flow through to this Department. If necessary, change the employee responsible to this Invoice using the Employee drop-down list If necessary, change the payment term for this Refund in the Terms drop-down list. This is used when you are crediting the customer's account.
When you change the Terms, the Due Date field will change accordingly to reflect that term.
Select a Product using the Name drop-down field.
When you select a product, its details populate from the Product Card into its line in the Invoice.
If necessary, change the unit type from the Unit drop-down list. Type in the quantity the customer wants in the Qty field. Press the down arrow in your keyboard ( ) to add more products to the Refund Select the Payment Method of this Refund If it is to be credited to the customer's account, leave the Invoice checkbox ticked
If the Customer requires payment immediately, untick the Invoice checkbox and select the payment method from the Payment Method drop-down list.
The Refund is done now. You can now save it, preview it or print it.
Saved Refunds will appear in the Invoice List.
Do you understand the effect of refunds in the payments window?
Select Payments from main menu tab Select Customer Payment Button Now a list of payments/invoices and refunds/credits will appear A Refund will appear as a negative amount This can now be applied to an invoice or refunded out to the customer
How do you apply a Refund to an invoice?
Payments tab Customer Payment Select the Customer/Job Enter Payment Amount which will be nil (as you are applying the refund) Payment Date Payment Method Reference No Select Department Select the Bank Account Then in the Apply column select the refund by clicking on the radio button and then the corresponding Invoice the refund is to be applied to Select Save
What effect does the process of a Refund have on the "To Be Deposited" banking section?
This results in a negative transaction if not applied to an invoice.
