We have a customer that overpaid on an invoice, and now wishes us to return the amount of overpayment. Normally we would have done an adjustment and coded the transaction to our bank code. We have installed the module Bank Recs though, which now changes everything, and I wondered what is now the best way to proceed, as Bank Recs does not retrieve to A/R when I am making a payment, as in this case.

Any guidance will be greatly appreciated.

If you enter a negative receipt in BankRec for the customer, this will credit the bank GL account and debit the clearing account. This will create a (retrievable) AR cash batch that when posted will credit the clearing account (net to 0) and debit the Receivables control account.

Would this meet your requirements? If so, then you can try this but I would suggest making a backup of your data before posting anything, in case this is not desired.

If you wanted to return the entire amount of the payment, you could use the NSF check feature in BankRec (from the View Bank Transactions area) to automate the document creation - delete any created BankRec or AR invoice batches if NSF fees are not desired to be applied.

Barb:

Assuming you are issuing a cheque then the pre-BankRec procedure does not change. Do an adjustment to the customers account to place the overpayment amount in a misc payables account. Now issue a cheque in payables to the customer and record the chq to the misc account offseting the AR adjustment entry. The chq will flow to BankRec.

If doing a credit card refund then record the credit card refund as a negative cash amount in BankRec as part of recording the cc cash batch.

You guys are the BEST. Thanks Doug, and Softrak! My life IS getting easier.

Cheers.