Refunding a Customer for an Overpayment

If a customer overpaid, complete the following steps to correct the overpayment.

Part A

  1. On the Site Map screen, click Accounts Payable > Maintenance > Vendor. Set up the customer with a vendor file. Once you have entered the necessary information, click Save until you return to the main menu.

  2. On the Site Map screen, click Accounts Receivable > Maintenance > Transaction.

  3. In the Transaction Code File Maintenance screen, set up the necessary transaction code for the adjustment transaction type that will credit a clearing or suspense account. Once you have added the code, click OK until you return to the main menu.

  4. Click Accounts Receivable > Data Entry > Cash Receipts/Adjustments.

  5. Complete the header portion of the screen for the customer you are refunding, making sure to enter the new transaction type code at the Transaction code field.

  6. In the detail portion of the screen, locate the invoice that was overpaid. Enter the refund amount as a negative amount.

  7. Click Save.

  8. Click the Listing button and print a listing for the customer.

  9. Click the Update button to display the Cash Receipts Journal screen. At the Customer field enter the customer you are giving a refund, or double-click on this field to select from a list of available customers. Click the Preview button to proceed with the update.

  10. Once the update has run, click OK again to return to the main menu.

Part B

  1. On the Site Map screen, click Accounts Payable > Data Entry > Vendor Invoices.

  2. At the Vendor code field, enter the code for the customer for whom you will issue an A/P check. Press F4 to search a list of available customer codes.

  3. At the Invoice # field, enter an invoice number. You may want to use the original invoice number, plus an alpha character or reference code (for example, 1001A or 1001REF).

  4. In the Entry type field, select Invoice.

  5. Review the G/L date field. This is the date that this transaction will post to the General Ledger.

  6. Complete the Invoice date field.

  7. In the Amount field enter the overpayment to be refunded.

    • Enter through the remaining fields accepting defaults until arriving at the A/P Invoice Detail screen.

    • At the Account code field, select the G/L account code that the new Accounts Receivable transaction code (established in Part A - Step 3) is credited. A suspense account or other non-direct account number is recommended.

    • The invoice Amount field will pre-populate enter through the field and click OK.

  8. Click Update.

  9. In the A/P Transaction Register screen, select a Sort by option and a Batch code for update and click the Preview button.

    Note: In the Sort Option window, select the Time of entry checkbox if you want to sort the listing in the order in which invoices were entered.

  10. Once the Accounts Payable Summary Transaction Register has printed, click the OK button and proceed with the update.

A refund check can now be selected and printed using any of the AP Payment Processing methods. Completing Part A and Part B will clear out the credit balance on the customer and the open invoice in Accounts Payable.