refund a customer for overpayment

How do you refund a customer for overpayment of an invoice?

  • Have you tried the MAS 90 Help utility? Detailed instructions are available when searching for Refund Customers or Refund Checks. 

  • Yes I've tried the help utility but I don't understand it.
  • Wow, I have to admit that even after using MAS for 15 years, when I was done reading the help text in refunding an overpayment, I was left scratching my head.....................................

     

    The question I always ask my clients is where is the overpayment sitting now - is it sitting as a credit in the customer's account or did you put it to a cash clearing account already.

     

    If it is still a credit on the customer's account (in AR), you will have to adjust the amount to a cash clearing account first.  And you do this via the cash receipts posting entry - either via a zero bank deposit separately or when you are posting deposits.

     

    Once you have set up the deposit entry, enter the customer number in question.  For a check number, use something descriptive like "refund" or "OverPay".  The check amount will be ZERO!

     

    Next go to tab two and select the invoice that has the overpayment FIRST as this amount should be a negative.  On the second line, change the line type to GL Account, then enter the GL cash clearing account to be used in step two.  Posting balance should be zero.  Accept the deposit and update.

     

    Next go to AP invoice entry, select the vendor number you wish to cut a check to (if you have or one use NOF (not on file)) for the number.  Enter something meaningful for an invoice number.  On tab two, use the cash clearing account that you used to clear the over payment from AR.  Update the invoice register.

     

    The cash clearing account should now be zero for this transaction as the AR side put a credit into the account and the AP side posted a debit to offset it to zero.

     

    Next cut your check via AP check processing.

     

    Yes, it is a little confusing but it works.

  • Thanks for this.  The Help section is no better 10 years later.

  • You could also use the Manual Check Quick Print feature, adding the GL distribution there, skipping the separate invoice entry step.

    https://help-sage100.na.sage.com/2021/index.htm#Subsystems/AR/ARPROCED/CREATE_A_REFUND_CHECK.htm

    (IMO, the Adjust step 2 in the linked instructions is not really as nice as the zero $ cash receipt method described by Jeff above).