Reckon Accounts Hosted - Cash Refund from a Supplier

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  • Updated 4 months ago


Receiving an Cash Refund from a Supplier


Sometimes you’ll receive a cash refund from a Supplier

For example, we will receive a refund as compensation for poor workmanship – say $100 (a fraction of the original payment)

First check the original bill and get the key information, such as service item, tax code and date.

We then enter in a credit note.

We enter the same service item and tax code entered on the original bill.

Enter in the amount to be refunded and a description – including a reason.

We get prompted to update the default price of the item – as this is a one of adjustment to the amount, we select ‘No’.

As this is a cash refund, we deposit this amount into a bank account using the ‘make deposits’ windows.

Enter the name of the supplier in the ‘Received From’ column and ‘Accounts Payable’ in the ‘From Account’ column. Then enter the refund amount.

You can also enter the cheque number and payment method of the refund

To clear this credit, choose ‘Pay Bills’

Select deposit created; we get prompted to apply the available credit this customer has – that is the credit we just put in.

This completes the supplier refund.

This money has now been refunded into the bank account and the service item will be seen as refunded.


If you have further questions on this process please visit www.reckon.support/support
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Rav, Community Manager

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Posted 4 years ago

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Paul

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Hi Rav

I have followed this process from creating the credit to making the deposit, but when I go to pay bills there is no deposit showing for me to clear.

What do I need to do?

Thanks
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NOURISH BANANA CO

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I have the same problem, did you ever resolve it Paul?
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Karen Coughlan

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Worked for me :) been struggling with it.
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J White

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Entering a transaction directly to the Accounts Payable ledger accounts goes against everything I have been taught. How is it that Reckon is encouraging bookkeepers and accountants to use a control account instead of providing an option to receive a refund through the Supplier section?
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John G, Information Support Analyst

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Thanks J White.

Our guides should be treated as just that - a guide to achieve an outcome with the functionality of the programme.  I'm sure there are many ways it can be processed and if you have a better way then by all means share it here on the Community.

Could you clarify your comment: "Entering a transaction directly to the Accounts Payable ledger accounts" as such a transaction is not possible in Reckon Accounts.  


regards,
John
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J White

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Good Day John,
In clarification - Any time that the control accounts ie Bank accounts, Accounts Receivable, Accounts Payable & GST accounts, are directly used in any transaction. Now I may be old school but experience has yet to show me that such practices are not fraught with danger, not to mention laborious reconciliations. Hence my comment and by providing a guide that tells the community to allocate the refund to the Accounts Payable ledger account - is that not contradicting your own statement? It is my opinion, and that is all it is - an opinion, that by guiding individuals to use that in one instance may very well lead to them using it in other situations too.
Would it not be better to have an option when raising a credit to issue or receive a refund / apply to an invoice? It is rather astounding that Reckon does not have that functionality.
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John G, Information Support Analyst

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Thanks for the clarification J White.

Reckon Accounts does not allow a transaction into any "control account" like Accounts Payable, etc.  All transactions are posted to a subsidiary ledger - to the supplier - and the totals adjusted for the Accounts Payable control account.

A Supplier Credit or Supplier Adjustment Note can be created just as you suggest, through Suppliers > Enter Bills > clicking the Credit button.  This credit is kept on the ledger to be applied later to a Bill and reduce its costs.

When a cash refund is received the Make Deposit option allows the funds to be received to the bank account and listed against the supplier subsidiary ledger in Accounts Payable, which affects the total of the Accounts Payable account.  

Yes, the video as it stands, does describe half the total process that needs to be done to properly affect all relevant accounts, as the Make Deposit transaction creates a balance (in effect a "Bill" has been created) that needs to be cleared.  Circumstances will dictate how that is done, and will involve the creation of a Credit that is then matched against the refund deposit to clear the Supplier balance.

Thank you for your insights on the process.


regards,
John.