Credit card refunds

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Terese

• July 18, 2016 19:09

Hello,

It would be nice to have the option to enter a credit card refund as part of a bank deposit since that is how it appears on our bank statement.

Thank you.

 

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  Tony

  • July 19, 2016 14:06

  Terese,

  You are able to do this now. You need to deactivate the following validation rules on the cash receipt and then you can create a negative cash receipt and group it with a deposit. 

  Balance_Must_Be_Positive

  Cash_Receipt_Can_Not_be_Negative

  We do this to account for credit card fees on settlement batches. 

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  Terese

  • July 19, 2016 23:34

  Hi Tony,

  Thank you for the quick reply. This is good news. A few of other questions on this same topic:

  1. Can the negative cash receipt be applied to a credit memo to clear the balance on it?

  2. Will the validation rules have to be deactivated each time we upgrade to a new release of Accounting Seed?

  3. Where do I find information on how to deactivate a validation rule?

  Thank you again,

  Terese

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  Tony

  • July 20, 2016 13:31

  Hi Terese,

  Answers for you are as follows:

  1. Yes a negative cash receipt can be applied to a credit memo, but not in the cash applications screen. You will need to create a manual Billing Cash receipt record to do this. 

  2. The validation rules are not reactivated upon an upgrade. They can only be reactivated if you enable them.

  3. To deactivate a validation rule navigate to setup/create/objects/cash receipt/validation rules. From here simply click edit and uncheck the active box. 

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  Terese

  • July 26, 2016 18:37

  Hi Tony,

  How do I create a manual Billing Cash receipt? I couldn't find anything in the Knowledge Base on this topic.

  Thanks,

  Terese

   

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  Tony

  • July 27, 2016 14:40

  Hi Terese,

  This knowledge article shows how to create a manual billing cash receipt:

   

  https://accountingseed.zendesk.com/hc/en-us/articles/217730457-Reversing-a-Cash-Application-to-Preserve-an-Audit-Trail

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  Terese

  • July 28, 2016 18:39

  Hi Tony,

  Thank you so much. This procedure saves me a lot of time and provides, in my opinion, a better audit trail for credit card refunds.

  Still hoping that credit memos can be cleared via the cash application screen in a future release.

  Terese

   

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  Samantha Turnbull

  • August 01, 2017 15:38

  Tony/Terese,

  We used this conversation as a guide for a similar situation. While trying to process a credit card refund, we deactivated the suggested validation rules on the cash receipt and created the credit memo and the negative cash receipt. However, there seems to be some additional restrictions that are not allowing us to close it out. Any ideas?

   

  Please advise,

  Thanks.

  Samantha

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  Ryan Faulkingham

  • August 01, 2017 15:55

  Hi Samantha,

  Are you receiving an error? Here are a couple of items to consider:

  Is the credit memo posted? 

  Is the accounting period open for the period that you want to apply this? 

  Is the correct amount being applied? 

  If you are still having issues, please submit a ticket to support.accountingseed.com with the specific cash receipt and credit memo details and grant us access to your org so we can help troubleshoot. 

  Thank you,

  Ryan

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  Terese

  • August 01, 2017 18:21

  Hello Samantha,

  Have you created the manual Billing Cash Receipt? That is the last step to clear both the Credit Memo and Cash Receipt since you cannot use "Apply" for negative cash receipts. The link to the knowledge article is in Tony's post dated July 27, 2016. We have been using this process for the last year and it works! Let me know if you have any questions.

  Terese

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  richa

  • October 04, 2018 15:45

  HI All,

   

  We have a situation where customer initially paid 100 and then there was a returned Transaction via check for 100. And then Again then re paid 100. The orignal invoice is just 100 . How should we handle this?

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  Ryan Faulkingham

  • October 04, 2018 15:59

  Hi Richa,

  I'm not exactly sure of your question on "how to handle this"? 

  Basically, when you received the initial $100 payment, you probably applied this to the related billing to close that out. Now you want to refund that $100 and it looks like you did this through a payable, which makes sense. Then, you received another $100 from the customer? You could just point this directly to a revenue GL account instead of A/R.

  Thank you,

  Ryan

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  richa

  • October 04, 2018 16:03

  But then the cash receipts will still show a balance. Shouldn't we be creating an extra bill?

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  Ryan Faulkingham

  • October 04, 2018 16:06

  If you would like to take the extra step of creating another bill so that the cash receipt does not show a balance, then that is fine, but the underlying accounting transactions will end up being the same whether the cash receipt shows a balance or not. 

  Thank you,

  Ryan

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