Credits and Refunds FAQs

Use the Enter a Return process to issue customer refunds for returned merchandise. In this process, several methods of refunding the customer are available from the Step 3 - Payment page:

1. To issue a direct out-of-drawer refund to a customer, indicate the payment type and amount you want to refund in the Payment Summary Window, which displays when you access the Refund field on the Step 3 - Payment tab.

2. To issue a check refund to a customer, select the Issue Refund Check field on the Step 3 - Payment tab.

3. To issue a credit to the customer’s account, do not indicate any information in the Payment Summary window. Make sure the Issue Refund Check field is NOT selected. Click the Save button on the Step 3 - Payment tab and the system will prompt you to post an A/R credit.

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.

Use the Adjust Dollars on a Completed Order routine to perform the following steps:

1. Click the Plus button to generate the adjustment number.

2. At the Store field, enter the store number.

3. At the Adjustment Type field, select Credit Adjustment.

4. At the Original Order field, enter the order number of the completed order. All customer and salesperson information for that order displays.

5. On the Payment page, enter the amounts to be refunded.

6. Follow the instructions in the Adjust Dollars on a Completed Order topic to complete the adjustment.

Tax can be zeroed out if you do not want to refund the tax. Click the Actions button on the Customer or Payment page and select Order Tax Information. Once in that screen, locate the appropriate tax (delivery, pickup, etc.) and then click the Zero Tax Amount check box to remove the tax from the refund.

Use the Adjust Dollars on a Completed Order routine to perform the following steps:  

1. Press Tab to generate the adjustment number.   

2. At the Store field, enter the store number.  

3. At the Type field, select “C” for Credit Adjustment.   

4. At the Original Order field, enter the order number of the completed order.  All customer and salesperson information for that order displays.

5. On the Payment tab, at the Delivery/Pick-Up Charge field, enter the amount you want to refund.  

6. If you do not want to refund the tax, you can zero it out by clicking the Actions button and selecting Order Tax Information screen. Once in that screen, locate the appropriate tax (delivery, pickup, etc.) and then click the Zero Tax Amount check box for the state tax amount in the middle section of the screen. If an additional/local tax is involved, you must click the Zero Tax Amount check box for them also. When finished, click Save to return to the Payment tab of the Credit Adjustments screen.  

7. In the Payment tab, click on the Action button next to the Refund field, select the appropriate payment type.  A negative amount displays in the Amount field, representing the pending refund.  After you enter all of the refund information, click on Save.  You will then be brought back to the Payment tab.

8. Click Save to complete the credit adjustment.  You have the option to print a receipt.

To issue a refund to a customer with a credit on account, use the Maintain Customer Balances process.   

1. Once you enter the Date and Customer Code, click the Keyoffs tab.  

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

3. At the Action field, select Refund, and then enter the Amount of money (negative) that you want to credit to the customer.

4. Click the Add button to update the grid.   

5. Click the Save button to update the refund transaction.

Important: If refunding or removing a deposit for an order that will be deleted, you must issue the refund BEFORE deleting the order.

If the order is open and the customer wants an immediate credit on their deposit, use one of the following methods.

1. Using the Enter a Customer Payment/Refund/Gift Certificate entry process, you can remove the deposit. Enter a negative amount and use the identical payment type (including credit card numbers) as was used on the order.

2. You can also use the Maintain Customer Deposits routine to refund a deposit before it has been deleted from the system.

If the order is open and you want to issue a credit on a deposit in the form of a check, do the following.

1. Access Maintain Customer Deposits.  

2. After you enter the Customer Code, select the Order line from the grid.

3. At the Action field, select Refund, and then indicate the Amount to Take and Reason for the refund.

4. Click the Add button. The system processes the transaction into the Enter Multiple Vendor Invoices (AP Approval) entry program.

To transfer a payment or customer credit from one order to another open sales order, use one of the following methods:

1. Through "back office" entry:

1. Access the Maintain Customer Deposits screen and enter the customer's account number at the Customer Code field.

2. From the grid, select the line with the deposit amount you want to transfer to another order.

3. At the Action field, select Apply.

4. At the Apply To field, indicate the order to which the deposit will be transferred.

5. In the Amount to Take field, enter the amount of deposit money to be transferred to the open order selected.

6. You can enter a comment in the Reason field for reference purposes.

7. Click the Add button to update the dollar amounts displayed in the grid, and then click the OK button to finalize the money transfer.

2. Through Enter a Sales Order:

1. From within the Enter a Sales Order process, access the Payment tab.

2. Click the Action button to the right of the Payments field. The Payment Summary Window displays.

3. Next, click the Actions button at the bottom of the Payment Summary window and select Deposit Maintenance.

4. The Maintain Customer Deposits (Deposit Maintenance) screen appears.

5. Follow the "back office entry" instructions above to transfer the deposit money to another order.

To apply on account money to an open order, use one of the following methods.

1. 1. Through "back office" entry:

   1. Access the Maintain Customer Deposits (Deposit Maintenance/Refund) screen.

   2. Indicate the customer's account number at the Customer Code field.

   3. From the grid, select the line with the on account amount you want to apply to an order.

   4. At the Action field, select Apply.

   5. At the Apply To field, indicate the order to which the money is being applied.

   6. In the Amount to Take field, enter the amount of on account money to be transferred to the open order selected.

   7. You can enter a comment in the Reason field for reference purposes.

   8. Click the Add button to update the dollar amounts displayed in the grid, and then click the OK button to finalize the money transfer.

   2. Through Enter a Sales Order:

   1. From within the Enter a Sales Order (Sales Order Entry) process, access the Payment tab.

   2. Click the Action button to the right of the Payments field. The Payment Summary Window displays.

   3. Next, click the Actions button at the bottom of the Payment Summary window and select Deposit Maintenance.

   4. The Maintain Customer Deposits (Deposit Maintenance) screen appears.

   5. Follow the "back office entry" instructions above to transfer the on account money to the order.

If you delete an order for which a deposit exists, the deposit remains in the system until you either issue a refund or apply the deposit to another order.

To issue a refund:

1. Access Maintain Customer Deposits, then enter the Customer Code.  

2. Select the Order line from the grid.

An order number that begins with "D*" indicates that the order has been deleted.

3. At the Action field, select Refund and then indicate the Amount to Take and Reason for the refund.

4. Click the Add button. The system processes this transaction into the Enter Multiple Vendor Invoices entry program.

To apply the deposit to another order:

1. Access the order in Enter a Sales Order.

2. In the Step 3 - Payment tab, click the Action button at the Payments field.

3. In the Payment Summary Window that opens, click the Actions button to select Deposit Maintenance.

4. Select the canceled order in the grid (Type is CAN), then in the Amount to Take field, enter the amount to be applied from the cancelled order to the new order.

5. Click the Add button, then click Save.

If you delete an order for which a deposit exists, the deposit remains in the system until you either issue a refund, or apply the deposit to another order.

To move all or a portion of the deposit money from the deleted order to a new order for that customer, do the following:

1. Access the new order via Enter a Sales Order.

2. On the Payment tab, click the Action button at the Payments field to access the Payment Summary window.

3. Click the Actions button at the bottom of the Payment Summary window and select Deposit Maintenance.

4. Select the order from the grid. (Order number is preceded by D*, indicating the order has been deleted.)

5. Enter the amount of deposit being moved in Amount to Take, and optionally enter Reason text.

6. Click Add and then click Save.

7. The Payment Summary window now lists the deposit money you moved to the current order.

The Cash Drawer Balancing Totals Report is designed to balance cash drawers.  For customer-pickup returns, only immediately-approved payment types (for example, cash, check, or off-line credit card transactions) appear on this report.  Payment types that require a delayed approval (such as on-line credit card payments) do not appear on this report.  Instead, those payment types appear on the Report Daily Receipts Register once you complete the order.  The following table outlines the situations in which transactions appear on the two reports.

For customer-pickup returns...

... if using On-Line Credit Card Processing for a bank card tender type:
	Regular Pickup (open order)	Regular Pickup (completed order)	Customer Drop-Off
Report Cash Drawer Balancing Totals	no	no	yes
Report Detailed Sales Receipts	no	yes	yes
... if using On-Line Credit Card Processing for other tender types such as cash or check:
Report Cash Drawer Balancing Totals	yes	no	yes
Report Detailed Sales Receipts	no	yes	yes
... if using Off-Line Credit Card Processing:
Report Cash Drawer Balancing Totals	yes	no	yes
Report Detailed Sales Receipts	no	yes	yes

This situation can be handled by creating a non-inventory product (for example, called Design Fee) in Advanced Product Settings and assigning it a replacement cost of zero, along with a selling price equal to the design fee.

You can then add the product to the order and later delete it if you no longer want to charge the fee to the customer.

 When creating a non-inventory product, you must assign it to a non-inventory product group.  Thus, you may need to create a non-inventory product category and a non-inventory group associated with that category if they don't already exist in your system.

When issuing a credit card refund to a completed order via Enter a Customer Payment/Refund/Gift Certificate, you are not prompted to print a receipt if the authorization number is missing. You must enter an authorization number for these types of refunds in order to print a receipt.   

When financing is applied to a return or exchange, the original invoice number is used to determine if the transaction was financed. If so, a calculation is done to determine the maximum refund amount available. This calculation takes into account any other refunds that may have occurred against the original invoice.

When working with a return or an exchange that nets a refund due whose original invoice is an exchange, the system works its way backwards to the exchange's original invoice (and further, if that original invoice is also an exchange) to determine if the transaction was financed and the refund dollar amount available. This occurs at the time the finance plan is added to the return/exchange.

Here is a sample transaction:

Transaction 1

Sale #88124223

Order Total $1558.70

Sale Item 1: 2@SOFA1

Sale Item 2: 2@CHAIR1

Total Financed $1558.70

 

Transaction 2

Exchange #88124224

Order Total $0.00

Return Item 1: 1@SOFA1

Sale Item 1: 1@SOFA2

Total Financed $0.00

 

Transaction 3                         

Return # 88124225

Order Total -$763.00

Return Item 1: 1@SOFA2     

Total Financed Refunded -$763.00

 

Transaction 4

Return #88124226

Order Total -$1264.40

Return Item 1: 1@SOFA1

Return Item 2: 2@CHAIR1

Total Finance Amount Available for Refund: -$795.70

This logic is used for online Revolving type finance plans and all offline finance plans. Third party financing does not allow the exchange process to be used for online Installment or Rent To Own type plans.