How to refund a check

The important objective in refunding a check is to:

  • Maintain a clear log of entries
  • Make sure balance of invoice is correct

Step by Step for a returned check
  1. Post check against invoice
  2. Write check to refund amount
  3. Post a payment against invoice via (Receivalbes \ post receivalbles)
  4. Enter check number "prefix "ADJ" or add a code to reference file 18 "ADJRC" - adjustment returned check
  5. In the note field enter actual check number , date on returned check
  6. Make check and payment amount the negative of amount sent to customer e.g if check is for 75.50 then the check amount and payment amount is -75.50

The invoice balance should now be open and in payment history is a notation of the returned money.  The invoice can now be adjusted  to zero if required.