REFUND CHECK TO CUSTOMER

Confirm Suspense Account.
Make sure you have a suspense or temporary account, 3900, 6900 or some other number.
To insert this account: Go to Menus > Ledger > Account Categories
Click on Insert
Enter the account number, 3900 (other numbers could be used)
Enter the description: Suspense or Temporary
Click OK

Insert the Customer as a Vendor
Go to Menus > Vendors
Click on Insert
Enter the Customer’s name and address
It is preferable to make the Vendor Code the same as the Customer Code
Click OK to save the entry

Write the refund check:
Go to Menus > Checks/Payables to open the Check window.
Click Insert
In the Payee field, Type the first few letters of the Vendor’s (Customer’s) name, then tab
Enter the positive amount of the refund in the Amount field.
Enter a memo (refer to the Invoice #)
Enter 3900 (the Suspense account) in the Expense Account Category
Enter the amount of the check in Amount
Click OK
Print the check.

Apply the outstanding credit:
Go to Menus > Customers
Find the Customer
Go to Commands > Adjust Receivables
Enter a description and memo to refer to your Refund Check #
Enter the negative amount of the outstanding credit in the Credit Amount field
Enter 3900 (the Suspense account) in the Offset Account
Apply the negative amount to the correct Invoice that shows a negative due.
Click OK.

The 2 sets of transactions on Account 3900 will cancel each other out. This technique will maintain an accurate checkbook and also accurate A/R Records.

Revised 4/21/14 AG