FAQ #: 58
How do I issue a customer a refund check for a credit balance?

This procedure can be used to refund a customer credit memo with a check written through the Accounts Payable module.

1. Insure that the Accounts Payable Invoice/Credit Entry program is set up to "interface" with the Accounts Receivable Cash Posting program. This is an option available through the Application Interface Maintenance program. Question # 4 should be answered "Y" for this option to work correctly. This question is found by clicking on the Warehouse tab, then the Warehouse number, and clicking on the "Change Warehouse" button, it is the 4th question on the list.

2. In the Accounts Payable Invoice/Credit Entry program, enter an invoice for the amount of the customer refund. In the general ledger distribution portion of the program, you must enter the accounts receivable account. The program will recognize that you are entering an invoice for an accounts receivable refund and will prompt you for the customer number. Enter the customer number who is to receive the refund.

3. The Accounts Payable Invoice/Credit Entry program will create a debit memo on the customer's account in accounts receivable.

4. Use Cash Posting to "pick up" the credit memo and apply it to the debit memo for the same amount created by the Accounts Payable Invoice/Credit Entry program.