Recording a Customer Refund

Some Of the nominals and ledgers used in this topic may be different to those in your chart of accounts.

If your establishment/organisation has received a payment from a customer that has to be refunded, for example, as a result of an over-payment, in error, or if they have been unable to fulfil an order, etc. you may issue a refund directly to the bank account from which the payment originated using a Bank Transfer (BACS). Alternatively, if the customer has a sales account on the Sales or Student ledger, a purchase invoice credit note can be issued that can be used against future purchases.

This topic describes how to deal with customer refunds using a Customer Refund document input form. If a credit note is to be issued to the customer, please see Recording Sales Credit Notes.

Recording a customer refund consists of the following:

Selecting the Required Document Input Form

Recording the Refund

Selecting the Required Document Input Form

Firstly, to record a refund, you need to select the applicable document input form, based on the type of payment that was made.

  1. Select Documents, then select Document Input from the menu.

  2. The Document Input dialog is displayed. Select Drill (...) in Document type, then double-select to select ASB1 - BACS Payment (where AS represents the location code of the document type) from the Select a document type dialog.



  3. Next, select Drill (...) in Input form, then double-select to select Customer Refund from the Select an input form dialog.

  4. The Number defaults to the next number in the sequence for the selected document type.

  5. The Date defaults to the current date and can be changed by selecting the down arrow and selecting the required date from the calendar. The date must be the same as the date the refund was issued. The Period field defaults to the current accounting period and can be changed by selecting Drill (...) in Period, then double-selecting to select the required period from the Select a period dialog. The period needs to be the accounting period in which the refund was received. If the required accounting period is now closed and no longer available, select the next open accounting period. Select OK to confirm your selections.

Recording the Refund

  1. The Customer Refund document input form is displayed populated with the details entered in the Document Input dialog.

  2. Double-select in Bank, then double-select to select the required bank account from the Select account dialog.

  3. Next, select the customer that received the refund. Double-select in Account , then double-select to select the required customer from the Select account dialog.

  4. The Document Date defaults to the date entered in the Document Input dialog. The date must be the same as the date the refund was issued. You can change the date by selecting the Document Date drop-down arrow, then selecting the required date from the calendar.

  5. Enter the value of the refund in Value. This amount must exactly match the amount that left the bank account. In the following example, the amount is 100.00 (do not enter any currency symbols i.e. £, $, etc.)

  6. Enter a description to help identify the purpose of the refund in Description , e.g. Payment 001 .

  7. The Account Summary on the right-hand side of the form displays the Debtor Balance, the Document Balance, and the New Debtor Balance.

  8. When you have entered the required refund information, press the F5 key to post the payment or select POST. Alternatively, if the document you want to allocate the payment to already exists in IRIS Financials, press and hold the Shift key and press the F5 key to post and allocate the payment (or select ALLOCATE before selecting POST).

  9. A blank document input form is displayed, with the posted document listed in the Documents Posted panel. Enter the details for an additional refund or select X to close the document input form. To view the transactions created by the posted document, select the link in the Documents Posted panel.