Refunding a Debtor (family in credit)

How to refund a Debtor that is in Credit and you wish to refund the Credit by drawing a cheque or paying
them directly from your bank account then proceed as below.

You will need to have an account in your Ledger, placed immediately below the Sundry Debtors or Debtor
Control Account. This account is created in Model Account entry and will be identical to the Debtor Control i.e. P Posting, A Asset, D Debit. Call the account a Refund of Fees Holding account or you can use your Suspense account.

Step 1 General Ledger code
Make sure you have a General Ledger code to use e.g. Refund of Fees or a Suspense account.

You will need to have an account in your Ledger, placed immediately below the Sundry Debtors or Debtor Control Account. This account is created in Model Account entry and will be identical to the Debtor Control i.e. P Posting, A Asset, D Debit. Call the account a Refund of Fees Holding account or you can use your Suspense account.

Step 2 Go into Debtor Receipting

1. [Desc] Type in your description
2. [New Receipt] create a new receipt to the Family in question
3. [Tender] select 0.00

1. [Debtors] select the debtors tab
2. [Apply $] under Apply$ put the amount you wish to refund e.g. -1727.10
3. Tick in [Apply]

Then go to the Ledger Tab:

1. [Ledger] select the ledger tab
2. [Account] select the ledger account you wish to use
3. [Amount] the amount should be a debit amount as per screen shot
4. Tab thru fields and the description will auto load
5. [New Receipt] select
[Finalise Batch]

This will clear the credit amount in the Debtors Masterfile.

Step 3 – Create the payment to reimburse the Family

Log into Finance > Gen Ledger > Batch Transaction Entry > select Ledger Payments

1. [Payment] select Payment
2. [New] select new batch
3. [Description] type in your description
4. [Date] select date
5. Select [New Item]
6. [Type] select your payment type ‘C’ = Cheque ; if paying directly from your bank select ‘BP’;
7. [Description] type in description if you wish to change
[Amount] type in amount refunding
8. If using a creditor code select [Payee] or a Cheque [Who]
9. Select the Ledger account you used in your Debtor > tab
10. [Description] will automatically be in there but you can type over or add more information
11. [Exec Payments] – if you are creating a cheque or file for bank
12. [Finalise Batch]