Refunding by Check

If you are writing the customer a check for the amount of the return, select 'Return by Check' from the Return Method drop down list. If 'Return by Check' does not appear in the list, you must add a new category numbered between 800 and 898 to 'Categories' on the Inventory Maintenance menu.

Follow the procedure outlined below:

  1. Click the Cancel button to clear the 'Return Payments' window from the screen.
  2. Click Maintenance on the menu bar.
  3. Click Inventory Maintenance.
  4. Click Categories.
  5. Add the refund category, referring to 'Categories' for information.
  6. Close the 'Edit Categories' window when the new category has been added.
  7. You should now be back on the Merchandise Return window. Click the Save button on the Merchandise Return window in order to re-open the 'Return Payments' window. Return by Check will now appear in the Return Method drop down list.

Note: We recommend assigning a 'clearing account' ledger number to the 'Return by Check' refund category, such as 121-3 'Return Check Clearing'. The Accounts Payable department will then use 'Check Disbursements' on the General Ledger menu to record a manually written check or 'Print Individual Check' on the Accounts Payable Reports Catalog to print the customer a check. The expensing account to use when recording the check is the clearing account 121-3. This will clear the clearing account to 0.00 and credit your checking account.