TABLE OF CONTENTS

• Summary
• End Result
• Method
• Considerations

Summary

When a Debtor needs to be refunded the below steps should be followed in order to ensure all accounts reconcile. 

End Result

Debtor will have a correct balance and the affected GL Accounts will reconcile 

Method

The best way to add the money back onto the debtors account is to ‘charge’ them via Debtor Charges Entry using a ‘Refunds’ fee code that is setup to go directly to the bank account.

If required the Refund Fee code can be set up as follows:

1. Open Debtor > Debtor Fee Maintenance
2. Click the ‘New’ button
3. Assign a ‘Fee Code’; for example ‘Refund’
4. Give a ‘Description’; for example, Debtor Refund
5. The G/L Code’ is the Bank Account G/L Code
6. Tax Code’ leave blank
7. On the General Ledger tab you select what you want to print on the Statement

The Refund process would be as follows:

1. Select Debtors > Debtor Charges Entry
2. Click on New debtor charges Posting and enter the relevant description
3. Select the Debtor Fee Code in the Debtor Charges Entry window
4. Find the debtor in the Student/Debtor area
5. Select the Refund fee code in Fee detail and enter the amount to be refunded and click OK (Enter this as a negative amount- this will show up as a negative figure against the debtor's outstanding tab)
6. Click on posting action and close off the transaction
7. Once this is done you should check this amount in GL > Bank reconciliation

Considerations

This process should be followed when the money is actually being returned to the Debtor.