How do I refund/apply a customer credit against a completed order?

You can refund or apply a customer credit against a completed order by using the Maintain Customer Balances process.

1. Enter the Date and Customer Code, then click the Keyoffs tab.

2. At the Reference field, select the line item from the grid containing the credit amount (which is a negative number).

3. At the Action field, select Keyoff, and then in the Amount field, enter the amount of money that you want to apply to the open line item balance. Remember that this amount is a negative number.

4. Click the Add button to update the grid.

5. Next, select the Reference line item containing the open balance.

6. Select Pay at the Action field, and then use the Amount field to indicate the amount to pay/key-off.

7. Click the Add button to update the grid.

8. When both entries are complete, click the Save button to update the key-off transaction.

If the completed return resulted in a refund via check, there are two options:

OPTION 1:

1. Create a new sales order with the same information as the original order. If you have a non-inventory product, you could use that as the merchandise line item to avoid any inventory movements. Complete that sales order using the CHK payment type for the total.

2. Create a return for this newly created sales order, and at that time select the ‘Issue Refund Check’ option.

3. This reverses what was done and somewhat re-instates the original transaction activity. NOTE: This way creates transactional activity that shows on your written and completed business values, as well as cash balancing and cash receipts.

OPTION 2:

1. Use Maintain Customer Balances (Manual Adjustments) to manually post a credit balance onto the customer receivable ledger balance.

2. Use Maintain Customer Balances (Keyoffs) to issue a refund to the customer for that amount via a check refund.

3. Process the refund through the Payables process for Select and Approve Bills for Payment to initiate the check creation.

4. Manually enter a General Ledger journal entry to remove the posting activity to the Cash Account which would now have been posted to twice when the return was created and now when this refund check is issued.