To clear credit balances refunded in Customer subledger

Question

Hi all,The credit refunded to customer transactions were recorded incorrectly by debiting a liability account and crediting bank. The correct way of processing the refund would have avoided this issue.&nbsp;Therefore, all these refunded credits were not being cleared out from the customer cards although they were being refunded sometime back.&nbsp;Please advise how to now get rid of the credit sitting in the customer cards and in Acc Receivable GL?&nbsp;&nbsp;Thanks

lrbooks61 · Answer

HiThe best way to do it is to delete the transactions and redo them&nbsp;If there are a lot of them it is a pain but it is more transperant&nbsp;Alternatively you need to debit the liability account and settle the refunds to the customers.This can only be done one customer at a time&nbsp;So you could do all the refunds the correct way and then do a journal to CR the Liabilty account you used and DR bank account ensuring that the amounts match the original and the journal will offset the refunds ( you will need to manually reconcile the entries&nbsp;Hope this helps&nbsp;Lisa

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To clear credit balances refunded in Customer subledger

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