how do I record a customer refund in reckon one

Rebecca Kirner
Rebecca Kirner Member Posts: 6
edited August 2019 in Reckon One
I'm sure this is a very basic process but how is a customer refund processed please?

Comments

  • Rebecca Kirner
    Rebecca Kirner Member Posts: 6
    edited June 2017
    Thanks. I've checked back on the tutorials but since the Reckon One dashboard was updated a couple of weeks ago I can't see how to do a sales credit.
  • Rav
    Rav Administrator, Reckon Staff Posts: 15,305 Community Manager Community Manager
    edited June 2017
    Hi Rebecca,

    Is this particular video useful in this case?


    https://www.youtube.com/watch?v=LhE_zZbJh3E



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  • Rebecca Kirner
    Rebecca Kirner Member Posts: 6
    edited June 2017
    Thanks for the video Rav.

    Everything I've looked at points me to the Customer Adjustment Notes under "Money In".
    The problem is the only tab I have under "Money In" is "Receive Money". I can't find the adjustment notes tab anywhere.

    I've checked settings in case I needed to activate something but am none the wiser.

    Any further suggestions would be appreciated. 
  • Shisir
    Shisir Alumni Posts: 230
    edited August 2018

    Hi Rebecca,

    You may not have the Invoices Module in your subscription, hence you are not seeing those options under 'Receive money'. May be you can look into and add invoices module, as it adds lot more values to than its cost.

    However if you are trying to do make payment to that customer, as a refund, and not able to select that contact on the make payment window, you will have to mark that Contact as both the 'Customer' and 'Supplier'. If the contact is not marked as a supplier, the system does not allow to do make payment transaction, for that contact. Simply go to contact, select the contact and edit it, and tick the Supplier box, under the type of contact.

    Further, you might want to seek accounting advice on what sort of entries to be done in your particular situation.

    Hope this helps.

    Regards

    Shisir

  • Rebecca Kirner
    Rebecca Kirner Member Posts: 6
    edited June 2017
    Thanks Shisir.

    I've activated the invoice module and now have a credit notes option but still no adjustment notes option. Can I use the credit notes option for the purpose of a customer refund since it allows me to credit the customer but I don't see how to allocate the refund amount to a bank account?
  • Shisir
    Shisir Alumni Posts: 230
    edited August 2018

    Thanks for the Update Rebecca,

    Credit Note is the term used for New Zealand Books and is the same as Customer Adjustment note, which is used here is Aus, :-) So yeah the above video instructions will show you how to issue the money out of the bank.

    Basically, when you save the Credit note, you will get the Issue refund Button on top right corner. Please click on it and follow the prompt.

    Hope this helps.

    Regards

    Shisir
  • Craig_9145426
    Craig_9145426 Member Posts: 2
    edited August 2018
    Hi Shisir,

    I believe I have a similar issue. I followed the instructions on the video but cannot make sense of the STATEMENT.

    Scenario. Invoice customer $100. Customer paid $200 which was received. Paid customer $100. So I should have $0 balance in the customer statement.

    I get:

    Balance -$200 (was -$100 to start)
    Overdue -$100

    Dased and confused.

    Craig
  • Shisir
    Shisir Alumni Posts: 230
    edited June 2017
    HI Craig,

    Welcome to Reckon Community. I am investigating on this and will get back to you.

    Thanks

    Shisir
  • Rebecca Kirner
    Rebecca Kirner Member Posts: 6
    edited June 2017
    Thanks Shisir, I was able process the refund as described. It's easy once you know how.
    Appreciate your assistance.
    Have a great weekend.
  • Shisir
    Shisir Alumni Posts: 230
    edited June 2017

    Hi Craig

    Please note the below advice is a guide only, you should seek an accountant's advice on this too.

    I believe your scenario here is little different to Rebecca.

    You will not need to do Customer adjustment Note, on this situation because I believe you have already done issue a credit when you received the overpayment on the original invoice. In order to balance your bank reconciliation etc, you would have had to do the single transaction for invoice and receive money against it. Hence customer balance is doubled up as there are two refunds technically, $100 for issue credit, another $100 for Customer adjustment note.

    In your situation, you have

    1)      Invoice for $100

    2)      Customer payment receipt for $200

    3)      And refund $100

    Assuming you have done the transactions in above order, where you have received the Money and issued credit for $100 as shown below, you will need to refund the amount using Journal and link that refund to the invoice.

     image

    .image

     

    Please follow the below steps for the journal:

    1)      GO to add new Journal.

    2)      Accounts receivable Dr for the refund amount ($100 in your example)

    3)      Make sure you select the customer in the contact column.

    4)      Bank Account Cr

    5)      Save and close

    image

    Now what this does is create the refund of $100, but it is still not linked to the original amount of $200, that we have received for the original invoice.

    1)      GO to the original invoice for that contact.

    2)      Click on the blue hyperlink for the Amount under Already paid.

    3)      You will see the link for Receipt and date as shown below.

    4)      image

    5)      Click on the receipt link

    6)      You will now see the Receive Money window. And there should me a new line under ‘ALLOCATE THIS MONEY TO AN EXISTING TRANSACTION’.

    7)      Under ‘How Much to Allocate’ Column, enter the refund amount. i.e $100 in your example.

    8)      image

    9)      Click save.

    This will now link that refund journal entry to the original invoice, and the customer balance will go to nil. Customer statement will look like this.

    image

     

    Hope this helps.

    Regards

    Shisir
  • Craig_9145426
    Craig_9145426 Member Posts: 2
    edited June 2017
    Hi Shisir,

    Worked a treat. Thank you very much. Final question; did the GST component get taken care of in this method? i.e. the tax component on the $100 overpayment was removed as well.

    Regards,

    Craig
  • Shisir
    Shisir Alumni Posts: 230
    edited June 2017

    Hi Craig

    Glad you liked it.

    Regarding your last question, again, it would be best to get your accountants involved.

    However, in my thought, and, as per your situation, you are just refunding the overpayment, (Note: not the total invoice) so there won’t be any tax involved.

    Invoice $100

    Payment $200.

    Refund is $100 which is basically the overpayment. There is no involvement of tax in overpayment and hence not in the refund.

    Although the situation would have been different if ou were refunding the customer for the purchase. Like refunding the total invoice.

    Regards

    Shisir