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Lloydy's avatar
Lloydy
Experienced Cover User
2 years ago
Solved

Refund

Hi I had to do a refund which on an overpayment.  Subsequently I sent it to the wrong account and it bounced back into our account.  I tried to do a reversal but MYOB said something about not being able to do this (maybe as its online - not sure) so I entered it as a payment in and placed in Suspence Account (couldnt enter it on a closed invoice).  Now I have written them a cheque which is entered in Suspence Account but am worried when it shows up on this months reconcilitation it wont balance.  How should I have handled this.  Thanks for your help.

  • Steven_M's avatar
    Steven_M
    2 years ago

    Hi Lloydy 

     

    Sounds like you have a bit going on with that situation. I would just break it down to what transactions are involved:

     

    • The overpayment by the customer
    • The payment to the incorrect account
    • The amount returning back into that account
    • The payment to the correct account

     

    First up the overpayment from the customer
    I couldn't work out if it was an overpayment or they have just paid again (slightly different process but overall the same)

    1. Go to Sales>>Recieve Payments
    2. Select the account you received the money into the Deposit to Account
    3. Select the Customer
    4. Enter the Amount Received
    5. Enter the same amount in the Amount Applied against the required invoice
      • If the invoice is closed select the Include Closed Sales option
    6. Ensure that the Total Applied matches the Total Received and there is no Finance Charge
    7. Record the transaction

    The above will generate a credit note for the customer.

     

    Next up the payment to the incorrect account

    You should have the credit note generated with that overpayment. This can be seen in the Sales>>Sales Register>>Returns & Credits window.

    1. Navigate to the Returns & Credits window within the Sales Register
    2. Highlight that overpayment
    3. Select Pay Refund
    4. Select the Account the money was paid from
    5. Ensure other details are correct
    6. Select Record

    The above will generate a withdrawal in your bank account to match the payment to the customer.

     

    Dealing with the bounce back in as it was paid into an incorrect account

    1. Navigate to Setup>>Preferences>>Security
    2. Enable Transactions Can't be Changed They Must be Reversed
    3. Navigate to that Settle Returns & Credits transaction you had recorded to represent that original payment
    4. Select Edit>>Reverse credit
    5. Record the reversal

    The above process will generate a deposit in the bank account which will represent the money coming back into the account

     

    Finally, the correct payment

    This would be the same process generating the payment to the incorrect account i.e. process that credit in the Returns & Credits window using the Pay Refund option to the correct account. This will generate a withdrawal in the bank account that will match that payment made to the correct customer's bank account.


    In terms of overall reconciling you would have:

    2 deposits - the original overpayment and the reversal of the incorrect payment

    2 withdrawals - the original payment to the incorrect account and the correct payment to the correct account.

     

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  • Steven_M's avatar
    Steven_M
    Former Staff
    2 years ago

    Hi Lloydy 

     

    Sounds like you have a bit going on with that situation. I would just break it down to what transactions are involved:

     

    • The overpayment by the customer
    • The payment to the incorrect account
    • The amount returning back into that account
    • The payment to the correct account

     

    First up the overpayment from the customer
    I couldn't work out if it was an overpayment or they have just paid again (slightly different process but overall the same)

    1. Go to Sales>>Recieve Payments
    2. Select the account you received the money into the Deposit to Account
    3. Select the Customer
    4. Enter the Amount Received
    5. Enter the same amount in the Amount Applied against the required invoice
      • If the invoice is closed select the Include Closed Sales option
    6. Ensure that the Total Applied matches the Total Received and there is no Finance Charge
    7. Record the transaction

    The above will generate a credit note for the customer.

     

    Next up the payment to the incorrect account

    You should have the credit note generated with that overpayment. This can be seen in the Sales>>Sales Register>>Returns & Credits window.

    1. Navigate to the Returns & Credits window within the Sales Register
    2. Highlight that overpayment
    3. Select Pay Refund
    4. Select the Account the money was paid from
    5. Ensure other details are correct
    6. Select Record

    The above will generate a withdrawal in your bank account to match the payment to the customer.

     

    Dealing with the bounce back in as it was paid into an incorrect account

    1. Navigate to Setup>>Preferences>>Security
    2. Enable Transactions Can't be Changed They Must be Reversed
    3. Navigate to that Settle Returns & Credits transaction you had recorded to represent that original payment
    4. Select Edit>>Reverse credit
    5. Record the reversal

    The above process will generate a deposit in the bank account which will represent the money coming back into the account

     

    Finally, the correct payment

    This would be the same process generating the payment to the incorrect account i.e. process that credit in the Returns & Credits window using the Pay Refund option to the correct account. This will generate a withdrawal in the bank account that will match that payment made to the correct customer's bank account.


    In terms of overall reconciling you would have:

    2 deposits - the original overpayment and the reversal of the incorrect payment

    2 withdrawals - the original payment to the incorrect account and the correct payment to the correct account.