I have a bank account called 'clearing bank' to do this
I use it in step 8 above, and I do post the transaction
db clearing bank
cr chequing bank
then I create a negative sales invoice for the customer
and I 'create a receipt' deposit to the clearing bank
db ar cr clearing
the clearing bank is used as a connector between AP & AR
when I reconcile the clearing bank, if it has a non-zero balance, I know some step was forgotten
So if you follow Joseph's solution, when you do the bank rec you have to match a deposit that's too big with a cheque you didn't post and a receipt that's less than what you actually received? Sorry but that sounds really stupid to me... especially if the cheque doesn't get cashed until the following month.
Just got off the phone with Joseph @ Sage support. Here's the process to issue a refund chq - you just can't post it!
Note: If hand-writing the refund cheque, skip this step.
1.Open the Payments window
2.Select Make Other Payment
3.Select By Cheque
4.Select the correct bank account from the From drop-down list
5.Enter the Cheque No.
6.In To the Order of, type in the customer's name, then press TAB
8.Select an account
Note: Which account is used does not matter; the cheque will not be saved, so it will have no effect on the general ledger
9.Enter the refund Amount
10.Enter the Invoice/Ref. and Comment if desired
11.Print the cheque without selecting POST
Note: Be careful, do not post this transaction
12.After printing the cheque, discard this transaction by closing the window and confirming discarding
This is ridiculously convoluted. When you receive an overpayment in QuickBooks, the system asks if you'd like to leave as an overpayment or refund to the customer....ridiculously easy!
I would like to see something done here as our procedure is to issue a cheque through accounts payable. Lots of work involved and very complex - clear out debit balance in AR if necessary and then create a new vendor in the payables module in the customer name, post an invoice and issue payment. Lots of room for improvement!
Agreed! As a bronze certified consultant I find that this issue confuses many of my clients! You need to make the process more intuitive - linking the refund cheque to the customer account that doesn't involve some kind of work around.