How to Record and Refund Customer Overpayment in Sage 50?
Customer overpayment refunds are ubiquitous in the business environment. There are several methods to process records and refunds in Sage 50. Use the screen named A/R Refund entry to reimburse customers for overpayments, credit balances, or returns of goods. The below article contains the guide on how to record and refund customer overpayment in Sage 50.
Things you Need to do Before Starting Refunds for Customer Accounts:
- Open the Bank services on the Banks Window
- Use issue refunds for each refund, specify the check forms, and determine the check stock while refunding check
- Locate common services to update exchange rates and currency information
- Find the rating date, rate type, and exchange rate to use for every multi currency refund you need to embed into the batch
- Make or choose the refund batch to use
- If you using an optional field then determine optional fields to process refund transactions
- In case you use an option named Payment processing then refunding a transaction paid through a credit card
- We will prefer stable internet connection.
Steps to Record and Refund Customer Overpayment in Sage 50?
Walkthrough the Below Steps to Record & Refund the Overpayment of the Customer:
Total Time: 15 minutes
Step 1- Receipt Recording:
Ans: 🔷 First of all open, the window named receipts
🔷 Choose Receipts if enter deposits option is not selected
🔷 Choose it to turn the field named Deposit Amount
🔷 Click on the suitable customer ID
🔷 Fill the figure being paid against the invoices in the column named Amount Received
🔷 Write the overpayment amount into an option named Deposit Amount
🔷 The amount will be recorded to Deposit account/Prepaid Sales
🔷 Click Process tab
Step 2- Refund Recording:
The overpayment can also be implemented to other outstanding invoices for the customer instead of being refunded. Fill the overpayment amount into the column named Amount Received for the invoices and fill the credit amount in the credit line same column. Here are the instructions:
🔷 Open the receipts wizard
🔷 Make a second receipt
🔷 Choose the Customer ID
🔷 Click Paid by Cheque
🔷 Choose the right bank account from the list named Deposit to drop-down
🔷 The credit line appears in red; write the received amount as a positive number
🔷 The sum will display an amount named negative
🔷 Choose process
🔷 Click Yes
Step 3- Print of the Refund Cheque:
If a cheque is hand-written then skip this step.
The overpayment of journal entries and the refund will be created in the initial and second receipts. In this step, you have to print a cheque in the program. Follow the below steps:
🔷 First of all open the window named payments
🔷 Choose to Make another payment
🔷 Click on By Cheque
🔷 Choose the right bank account from the list labeled drop-down
🔷 Fill the cheque No
🔷 Type in the name customer and Into the order of
🔷 Hit TAB
🔷 Choose Continue button
🔷 Click an account
🔷 Fill in the refund amount
🔷 Write the Ref./invoice and comment if needed
🔷 Now without choosing POST print the cheque
🔷 Once you print the cheque then discard this transaction by closing the wizard.
Hopefully, the information is helpful! Now you know how to record and refund customer overpayment. If you need to know more about the use of refund entry for cash refunds or how to apply a single refund to multiple credit documents then contact experts. Use a live chat or drop an email to solve queries.
🔷Frequently Asked Questions🔷
Q1. Why Would I Use the A/R Refund Entry Wizard in Sage 50?
Ans: 🔷 Verify refunds or enter cash to customer accounts
🔷 Fill credit card refunds to customer accounts for payment processing
🔷 Print customer payments checks Verify refunds or enter cash to customer accounts
Q2. How Would I Allocate the Job-Based Refunds?
Ans: The Accounts Receivable window helps in maintaining the outstanding balance for job-related documents. Use the apply option to allocate the job-related refunds. Click on the Job details window for a manual amount allocation.
Q3. How Would I Print the Refunding Checks?
Ans: 🔷 Give a click on the option named Print Check on the A/R Refund entry screen while entering refund
🔷 Choose a refund batch on the screen named refund batch list for the range of checks. After this hit the Print/Post tab
Q4. How do I Post the Refunds in Sage?
Ans: Use the list screen named Refund Batch or Window labeled Post Batches to post refund batches range. Use the below info to post refunds:
🔷 Updates Job costing and Project for job-based refunds
🔷 Use the refund check information for bank updates
Q5. How Would I Add a Multi-Currency Refund in Sage 50?
Ans: You need to specify the currency for each tender and the bank for the refunds. Moreover, you use one currency and one bank per tender to issue a single refund.
Q6. What If I Need to Refund a Currency in Sage 50?
Ans: You have to specify the “rate” date, “rate” type, and the “exchange” rate on the window. Use the Rate option to determine the exchange rate for refunding amounts.
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