Overview 

The process to create a refund for an overpayment or duplicate payment from beginning to end can conveniently be completed directly from a Cash Receipt. The system will automatically create behind the scenes the appropriate records for tracking this process. Additionally, this includes being able to print a check as part of this process (if necessary), as well as view refund information on the customer’s Activity Statement.

Note: In order to issue a refund from a Cash Receipt the current Accounting Period must be open, and the original Cash Receipt must have a remaining balance.

Note: Cash Receipts with Prepayment Pending checked cannot be refunded. The Prepayment Pending checkbox indicates that a customer's prepayment has been requested but not yet received. No GL entries exist yet, so there is no ledger balance to reverse. If you attempt to refund a Cash Receipt in this state, the system displays the error: "You cannot refund this prepayment cash receipt because it is awaiting payment." This restriction is lifted automatically once the customer's payment is received and the Cash Receipt is posted.

Clicking the Refund button on the Cash Receipt screen will display the “Issue Refund from a Cash Receipt” dialog box. This dialog box includes the following:

• Refund Amount to be Processed - defaults to the balance on the Cash Receipt. This amount can be modified, if necessary.
  Note: The amount entered in this field cannot exceed the balance on the Cash Receipt.
• Bank Account - the GL Account to which a debit entry will be made upon posting. The Bank Account defaults.
• Reference - this defaults to the related Cash Receipt number. This information can be modified, if necessary. 
• Refund Date - this defaults to today’s date. Click the Calendar icon to select a different date, if necessary. 
• Payment Type - click the drop-down list to select Check or Electronic.
• Accounting & Other Information - this section includes the following default fields. However, additional fields can be included by adding them to the CR Refund field set on the Cash Receipt object. For information about how to add fields to a field set, refer to the Edit a Field Set article.
  • GL Variable 1-2 - used to report designations like divisions, departments, geographies, cost centers, profit centers, or business units.
  • Check Number – when a refund is generated, this defaults to the last check number that was used, plus one for the associated Bank Account. This value is calculated across Cash Disbursements and refunds. The value in this field can be manually changed, if necessary.
  • Memo - this textbox is available to include notations about the refund for printing on the check.
  • Currency – if Multi-currency is enabled, this field will be included as a default field.

After completing the fields in the “Issue Refund from a Cash Receipt” dialog box, click Confirm to start the actual refund process. When you click Confirm, the following records will be created in the background to complete the refund process:

• Credit Memo - will automatically be created to enable the refund process. 
• Refund Cash Receipt - is applied to the Credit Memo and used to print the refund check, if the Payment Type is Check. The newly created Refund Cash Receipt automatically has the Type field set to Customer Refund.
• Refund Billing Cash Receipt (BCR) - applies the original Cash Receipt to the Credit Memo. This special kind of Billing Cash Receipt will have a Posting Status of “Refund,” but will have no transactions.

Void a Refund Cash Receipt

If you need to void a Refund Cash Receipt, use the steps that are available in the Void a Cash Receipt article. Voiding the Refund Cash Receipt will increase the balance on the related Credit Memo. Then, if you still need to refund the payment amount, access the Credit Memo, and Issue a Refund from a Credit Memo.

Note: The ability to void a Refund Cash Receipt using the Void a Cash Receipt article is only applicable if your org has been upgraded to the Winter ’25 Preview 1 release or higher.

Issue a Refund from a Cash Receipt

1. Navigate to Accounting Home and click the Create Entries tab. Then, under the Revenues menu, click Cash Receipts.
2. Select a list view (other than the Recently Viewed list view). 
3. Choose the Cash Receipt for which you want to issue a refund.
4. Click Refund. The Issue Refund from a Cash Receipt dialog box displays.
   
   
   
   
5. Most of the fields automatically default from the original Cash Receipt. However, you can modify the default information, if necessary.
   Note: Required fields display with a red asterisk (*).
   

   Note: If you include additional fields on the CR Refund field set, they will display in the Accounting & Other Information section. For more information, refer to the Edit a Field Set article.

   1. Refund Amount to be Processed
      Note: Only unapplied amounts on the Cash Receipt can be refunded. 
      
   2. Bank Account
   3. Reference
   4. Refund Date
   5. Payment Type
   6. GL Variable 1-2
   7. Check Number
   8. Memo
   9. Currency (displays if Multi-currency is enabled)
      
      Note: Any GL Account Variables and Project/Project Task values on the Cash Receipt that is being refunded will be populated on the Refund Cash Receipt once the Confirm button is clicked.
      
      
6. Click Confirm. A message displays with the new Cash Receipt number.
   
7. Display the Cash Receipt list view.
   Best Practice: Create a list view specifically filtered on the Refund Cash Receipts. Cash Receipts that are refunds will automatically include “Customer Refund” in the Type field.
   
   
   Note: Click here to view the above image in full screen. 
   
   
8. From the list view, select the newly created Cash Receipt.
9. If Check was selected as the Payment Type, on the new Cash Receipt, click Print Check to print a check for the customer.
   
   Note: The Payee address fields must be completed in order for this information to display correctly on the check and the check stub.
   
   
   Note: Click here to view the above image in full screen. 
   
   The refund information will be available to display on the Activity Statement for the customer.
   
   
   Note: Click here to view the above image in full screen. 
   

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