Moving a Refund from Accounts Payable to the Customer Payment Register

When doing a Credit Memo on an order you have the option to send any funds back to an original method of payment, to Accounts Payable for a company check to be cut, or to create a credit memo to apply to future invoices. Below are instructions for moving a check refund from Accounts Payable to the Customer Payment Register in Accounts Receivable. Because this process involves Post Customer Payments, we have included instructions for both the TEXT and the new Graphical version below.

NOTE: This doesn't work the same way as a Deposit Deletion. For help with deleted deposits please see Deposit Returned via Company Check in Error

First, create a Credit Memo in Accounts Payable:

1. Navigate to Accounts Payable A/P Open Item Maintenance.
2. Type the Vendor ID for the Customer receiving the refund (if the Vendor ID does not exist, you can add it from this screen. It is recommended to add a * at the beginning of the Refund Vendor ID).
3. Click the option to Manually Enter Invoice.
4. At the Invoice Type, enter C as you will be creating a Credit Memo.
5. Create an Invoice Number for the refund, input the date and use 99 as the P.O. Number.
6. At Current Balance, type the amount as a negative value needed to offset the Accounts Payable Invoice. This will match the amount you are moving to the Customer Payment Register. 
7. Tab through the remaining fields. When you land at G/L Account, you may select a Clearing Account, Suspense Account or Exchange Account (anything that is not a bank account).
8. Tab to the option to Add and click to add the Credit Memo. 
9. At the bottom of the entry screen, you should have matching debits and credits with .00 in the field labeled To Balance. Click Accept.
10. Navigate to Accounts Payable  Hand Check/Void Check module, toggle the Debit feature and select the system-generated invoice and the Credit Memo created above and pay against each other. This should generate a net-zero payment.

Example Screens:

Next, you will enter a payment in Post Customer Payments. Below are instructions for the TEXT version of Post Customer Payments:

1. Navigate to Accounts Receivable Post Customer Payments.
2. At Customer ID, type NONE, hit tab and enter a Comment with the true Customer ID.
3. Type the same Clearing G/L Account used for the Credit Memo in Accounts Payable  Open Item Maintenance.
4. The Payment Date should be the same date used for the Invoice in the instructions above.
5. The Posting Period will be automatically selected based on the user’s Date selection.
6. The Item Reference can include the original job number.
7. Select the Source Type that the refund should have been issued on.
8. Enter the Source Amount as a negative number.

Example Screen: