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Refund of payment applied to sales order

  • 1.  Refund of payment applied to sales order

    Posted 11 days ago
    Does anyone know how to refund a payment that has been applied to a sales order?  I tried looking under Sales/refund checks and the receipt does not show up.   Even thought that I might be able to unapply and void as a last resort, but the receipt is in a closed period, so I am unable to do that.

    On another note- is there a better way to apply these types of payments?  There are times we receive advance payments, and have been applying in the Sales Transaction Entry screen.   The payments hit the GL but do not show up on the AR report, transactions by customer etc,

    Thanks
    #Accounting

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    Susan Angermeier
    EIZO Rugged Solutions Inc.
    Altamonte Springs FL
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  • 2.  RE: Refund of payment applied to sales order

    TOP CONTRIBUTOR
    Posted 10 days ago
    When you apply a prepayment to a SOP Sales Order the transaction creates a Band Deposit. DR Cash and CR Customer Prepayments (normally a liability account)
    The Deposit does not touch AR and it is not an Unapplied Cash Receipt on the Customer.
    Typically you received a Check the Customer Check Number is used as the transaction Check Number

    You could enter it as an Unapplied Cash Receipt in RM but then it would not be attached to the SOP Order and when transferred to a SOP Invoice the  Balance would not be net of the Prepayment. But OK you could do it like this and apply the payment to the invoice after posting but while sitting in Unapplied AR on the customer account it could be used for other invoices.

    If you enter it on the SOP Order as a Deposit and the Customer then later cancels the Order and wants their money back, first you remove the Deposit on the SOP Order. This creates a negative Bank Deposit CR Cash and DR Customer Prepayments.

    You will see both the originating Deposit and the negative Deposit in your Check Book Register under the Customer Check Number

    Then you enter, print and post an unapplied AP Check on your REFUND Vendor where Check Name = Customer Name using the Customer Check Number-R (or close) from the original Deposit. Don't worry about the GL accounts just wash them in AP. Post it and then Void it. There is no corresponding Vendor Invoice. Just Void the Check after printing and posting.

    Now in Bank Reconciliation when Customer Check Number-R clears the Bank and is on the Bank Statement, match it to the Negative Bank Deposit with the Same Number less the R in your Checkbook Register.

    Done.

    If you do it as Unapplied Cash in RM, then you can use the Customer/Vendor transactions to create the AP side. Its not much easier and you lose traceability of the Customer Deposit on the SOP Order.  So unless you get a lot of prepaid order cancellations, I would just keep in on the Order and then do a dummy check and void to refund them and let SOP do a Deposit and then a negative Deposit in the checkbook when you add and remove it on the Order.

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    Thaddeus Suter
    Retus, Inc
    HELOTES TX
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  • 3.  RE: Refund of payment applied to sales order

    TOP CONTRIBUTOR
    Posted 10 days ago
    I meant Bank Deposit not Band Deposit. Yikes!

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    Thaddeus Suter
    Retus, Inc
    HELOTES TX
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