The Ledger Lowdown: Refunds for Clients

Jennifer Maroney — Fri, 06 Mar 2009 11:46:00 GMT

This one is dedicated to you Accounts Receivable users out there. If your organization could find itself in a position where a refund for a service, product, or whatever is needed, you should keep reading. The key to this process resides in Accounts Payable. If you have AP, you can set the bank to create a refund check from AR. I should say it is not as simple as it sounds the first time since there is some setup involved, but the next time will be easy as pie.

The first thing you need to do is set up your AP bank to allow refunds. Here how:

Open Edit account details for the Accounts Payable bank.
Select the Payments tab.
Mark the Allow? checkbox in the Accounts Receivable Refund Check and Accounts Payable One-Time Check rows.
Save and close the Bank account screen.

Now that you have the bank ready to accept a refund from AR, you need to create the refund billing item in AR Configuration or Records. This is the same process as creating any other product or billing item. Here are the steps in case you are rusty or new:

In Records or Configuration, click Products and Billing Items.
Select File, New, New Refund Item from the menu bar.
Enter the appropriate information for the refund.
Mark the Allow user to create a Refund Check to be paid through Accounts Payable checkbox.
Save and Close the Refund Item.

After creating the item, you're ready to add the refund billing item to the client record and create the refund check. Here's how:

In Records, click Refunds.
Click Add a New Refund.
Enter the appropriate information.
On the Refund tab, click Create Refund Check.
Select the Accounts Payable bank from the Bank account drop-down list.
Select the client or Other from the Print Check to drop-down list.
Click OK.
The Add a One-Time Check screen will appear.
If Other was selected, enter the payee information, including the payee name.
Click Print Later and Close to print the check with the next check run or Print Now to print the check immediately. Note: Make sure the correct check stock is in the printer before you click Print Now.
Save and close the refund.

That's it, you're done! Well, unless you selected to print the check later and you are responsible for printing checks . Talk to you soon!

Payroll Post Notes: Over-Deducted Deduction?

Jennifer Maroney — Mon, 25 Aug 2008 14:32:00 GMT

This is one of those posts that may not apply to everyone right now, but you may need at some point in your Payroll career. Deductions can be set up for many reasons and can stop being withheld once they reach a specific amount. What happens if the deduction is included in a calculation, or a few calculations, when it shouldn't? That's where this post comes in handy. If you find that a deduction has been overwithheld or over-deducted, you can simply refund the deduction.

The quick and dirty explanation is to create a deduction with a negative amount. When the deduction is included in the calculation, it will give the money back to the employee, so to speak.

If you're like me and prefer to see things stepped out, here you go:

Open the employee record.
Select the Compensation/Deductions tab.
Add a new deduction using the deduction ID being refunded.
Make the deduction effective from and to the period in which the refund should be calculated.
Using the amount per period option, edit the deduction amount to be the amount to refund.
Save and close the deduction.
Calculate Payroll.

Hopefully you will never need this process, but if you do it is always best to be prepared.

Talk to you soon!

The Ledger : refunds

The Ledger Lowdown: Refunds for Clients

Payroll Post Notes: Over-Deducted Deduction?