If a customer has unapplied cash on their account, you are able to refund all or a portion of the amount to a credit card or bank account on file for the customer. There are few steps that must be completed to be able to make the refund.
- Move the unapplied cash to your EFT Refund G/L account.
- A credit memo is created using your EFT Refund invoice item, which is linked to the G/L account of where the positive payment was applied.
- The Credit Memo is transferred to an EFT Refund.
Follow the steps below and on the following pages.
1. Open the customer record with the unapplied cash. In the Active pane under the Open Credits area, highlight the cash item, right-click and select the Apply option.
2. The Apply Customer Credit form will be displayed. On the Other tab, check the box to the left of Miscellaneous. In the GL Account field, enter your EFT Refund G/L account (this is a liability type account). Select the appropriate category, typically G & A. The amount field should automatically fill with the total amount of the unapplied cash. If you are not refunding the entire amount, you may change to a lesser value. When finished, click the Save button.
You now have funds “parked” in the EFT Refund G/L account. The next step is to create a credit memo on the customer’s account using your invoice item that points to the EFT Refund G/L account. After the credit memo is saved, you will convert that credit memo into an EFT refund to the customer.
3. Open the customer record where you will enter the credit memo. On the customer tree, highlight Credit Memos, right-click and select the New Credit Memo option.
4. The Credit Memo form will be displayed. Select the appropriate Category, typically G & A. On the Items tab, select your EFT Refund item code. Enter a Qty of 1 and type in the amount that is being refunded. If the item code was setup correctly, no tax should be calculated on the credit memo. At the lower left, select the credit memo Description, and the Credit Reason. You may type in a brief note into the Memo field for future reference. When finished, click the Save button.
5. We now have a credit memo that we can convert into an EFT Refund. Open the customer record, and in the Active pane under Open Credits, highlight the Credit Memo that you saved in the prior step, right-click and select the Refund to CC/ACH option.
6. The Select Payment Type form will be displayed. Type in the Refund Amount. From the drop-down list, select either the bank account or credit card that will be refunded. When finished, click the Refund button at bottom of the form.
7. A confirmation message will be displayed. Click the Yes button to proceed.
A second message will be displayed indicating the EFT Refund was successfully posted to the EFT Processing. Click the OK button to close the message box.
If you open the EFT Processing form, on the Refunded tab, you will see your refund transaction.
