The window that is used to receive a prepayment from a customer can also be used to reduce the prepaid balance against any user selected GL Account.
The Customer’s prepaid balance shows at the bottom of the customer window.
PF5:
To issue a refund to a customer for the prepaid balance amount:
1. Find the Customer.
2. Go to Commands > Receive Payment.
3. If there are no open invoices you will be prompted to enter a Prepayment. Click Yes at the Process Prepayment prompt.
If there open invoices, click on the Prepayment button, then click yes at the Process Prepayment prompt.
4. Enter YOUR refund Ck#, any memo in the ABA field, the check amount must be a MINUS, Post Date today, and the Account field should be your Temporary Processing Account, often 3900. Do NOT enter against Cash in Bank, unless this is a Credit Card refund, or unless you keep your bank account in a different accounting system. Click OK.
5a. Refund a check: Go to the Checkbook module, enter the customer as a vendor, and insert a check for the POSITIVE amount against the Temporary Processing Account. This step is not needed if you keep your bank account in a different accounting system.
5b. Refund by Credit Card: The GL Account fiedl in 4 above would be the cash in bank account, so no other steps are necessary.
This method assures that the Customer prepayment account is updated properly and you have a full audit trail of the transaction.
If you do not use the Checkbook module, in Step #4 you can enter the Offset account as Cash in Bank, often 1100.
If you refund by credit card or wire, in Step #4 you can enter the Offset account as Cash in Bank, often 1100.
PF7:
Set up a receipt account for 3900. Menus > Maintenance > User Lists > Group 2 > Receipt Account.
When processing the prepayment as a refund, choose the 3900 account from the Check dropdown box. Use a negative amount. Then continue from 5a above.
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