CenterPoint® Fund Accounting - Refund a Negative Invoice (Credit Memo)

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If a refund is needed for a customers return that was saved as a negative invoice instead of a customer deposit, please choose one of the steps below.

This document provides step-by-step instructions on how to refund a negative invoice.

Option 1 - Cash Refund

Step A - Create a Customer Refunds Sales Item (One Time Setup)

Step B- Enter a Negative Customer Invoice

Step C - Apply the Negative Invoice to the Original (Positive) Invoice

Option 2 - Refund with Handwritten or Computer Generated Check Refund

If a refund is needed for a negative invoice for a customer, you have two options:

Option 1 - Cash Refund

Step A: Create a Customer Refunds Sales Item (One Time Setup)

  1. Select Setup > Sales > Items. Click New.
  1. Enter an Abbreviation that can easily identify the Customer Refunds sales item.
  2. Enter Customer Refunds as the Name.
  3. Select Non-Tracked Item as the Type.
  4. Select a Sales Tax Category.
  5. Uncheck the Taxable box.
  6. On the Accounts tab, enter or select a Sales and a Returns & Allowances account. If you are also using the Sales Orders module, an Expense account is required.
  7. Click Save.

Step B: Enter a Customer Invoice (this will deduct the amount from the cash account and document the refund on the customers account)

  1. Complete the Select tab with the customer's information.
Note: If you want to attach a document to this transaction, see the Attach Documents to Transactions topic for detailed information.
  1. Select the Invoice tab.

  1. Select the Customer Refund sales item created in Step 1-A.
  2. Enter a negative Quantity.
  3. Change the Account to the Cash account used for refunding money to customers.
  4. Enter the amount to be refunded in the Amount column as a negative number.
  5. Save the invoice.

Step C: Apply the Negative Invoice to the Original (Positive) Invoice

This has no financial affect, but will remove both the customers negative and positive invoice from the A/R Aging Report.

  1. Select Processes > Sales > Receipts.
  2. Fill in the Company/Fund, BankAccount and Customer fields.
  3. Click on the Apply to Open Invoices button.
  1. Select both the positive and negative invoices for the refund amount.
  2. Click OK.
  3. The total of the receipt will be $0.00.
Note: If you want to attach a document to this transaction, see the Attach Documents to Transactions topic for detailed information.
  1. Click Save.

Option 2 - Refund with Handwritten or Computer Generated Check Refund:

 
  1. Complete all of the steps above for a Cash Refund (Note: in the Account field, be sure to select the checking account you will be writing the check out of).
  2. Select Setup > Names. Find this customer and click Edit. Put a check mark in the Vendor box. Click Save.
  3. Select Processes > Payments.
  4. Process a normal Payment transaction for this customer. Important: when entering the payment transaction, use the checking account in the Bank Account AND in the Account fields. If a computer generated check is needed, be sure to select the Print this Check field, otherwise leave it blank to record a handwritten check.  
Note: If you want to attach a document to this transaction, see the Attach Documents to Transactions topic for detailed information.

  1. Click Save to complete the refund and if selected, print the check.

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