Refunds

To track a refund in the integrated billing:

Scenario #1 – If there is an unapplied PAYMENT showing that they need to refund to the customer.

1.	Look at the JEE-Accrual basis to see what Accounts Receivable the original payment was tracked under.

2.	Create a new INVOICE, for the same dollar amount as what the refund is going to be, using the Accounts Receivable account determined in step 1. The fee item that would be used doesn’t matter.

3.	Open the unapplied PAYMENT transaction so that you can apply it to the newly created invoice.

4.	Open the applied payment and select Refund Payment. The original accounts are already selected and will be reversed.  Click Save.

5.	Follow up by issuing a check out of the accounting system’s check register debiting the necessary income account and crediting the bank account.

6.	The transaction is not exported because the issuing of the check or recording of the credit card reimbursement in their accounting software, has already accounted for this. Refund transactions are hidden from the export by default.

 

Scenario #2 – If the customer’s account has a zero balance.

1.	Find and open the payment that was applied and select Refund Payment. The original accounts are already selected and will be reversed.  Click Save.

2.	Follow up by issuing a check out of the accounting system’s check register debiting the necessary income account and crediting the bank account.

3.	The transaction is not exported because the issuing of the check or recording of the credit card reimbursement in their accounting software, has already accounted for this. Refund transactions are hidden from the export by default.

 

Scenario #3 – If there is an unapplied PAYMENT showing that they need to partially refund to the customer.

1.	Look at the JEE-Accrual basis to see what Accounts Receivable the original payment was tracked under.

2.	Create a new INVOICE, for the same dollar amount as what the refund is going to be, using the Accounts Receivable account determined in step 1. Make note of the fee item that is being used (in description on invoice even put some note to track refund).

3.	Open the unapplied PAYMENT transaction so that you can apply it to the newly created invoice.

4.	Open the original PAYMENT again and select the REFUND PAYMENT option.

5.	Reset any line items that are not part of the refund to a ‘blank’ status so that they are not part of the transaction.

6.	Follow up by issuing a check out of the accounting system’s check register debiting the necessary income account and crediting the bank account.

7.	The transaction is not exported because the issuing of the check, or recording of the credit card reimbursement, in their accounting software, has already accounted for this. Refund transactions are hidden from the export by default.

Tips and information on Refunds:

If this refund needs to be tracked due to an event and tracking is desired within the event module as well, adjust the registration fee amount within the event by decreasing it by the same amount as the refund, or by removing individual attendees.

The above procedures do not require any deletion of transactions.

The Members' Account tab will list this transaction as a Receipt but will show the description as "Refund".

At this time, this feature is only available for payments and not Sales Receipts.

Refunds will not be included by default on the journal entry export for either cash or accrual basis but could be included by selecting the "Show Refunds" checkbox. Because the reversal is often handled in your accounting software through cutting a check or other manual reversal, the refund transaction is typically omitted from the export.

Note: Ability to avoid using your virtual terminal to complete a refund directly back to Authorize.Net is available. You still need to use the Refund Payment button on the payment itself to create the refund transaction, but the actual refund can be handled through a “Refund” link on either the Credit Card Listing report on the Billing->Reports tab or from a fully applied payment. Eligible transactions are those where:

It has been at least one day since the transaction was made

The transaction is not older than 120 days old and

The transaction happened around or after 4/1/2014 which was then code was implemented to record the Authori.Net AIM transaction ID.