INFORMATION PROVIDED IN THIS DOCUMENT AND ANY SOFTWARE THAT MAY ACCOMPANY THIS DOCUMENT IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE.
The user assumes the entire risk as to the accuracy and the use of the information supplied. This information may be copied and distributed subject to the following conditions: 1)All text must be copied without modification and all pages must be included; 2)If software is included, all files on the disk(s) must be copied without modification; 3)All software included and documentation must be distributed together; and 4)This information may not be distributed for profit.
Copyright © 1996 Platinum Software Corporation. All Rights Reserved.
Platinum ia a registered trademark of Platinum Software Corporation.
All other trademarks contained herein are acknowledged.
REFUNDING AN OVERPAYMENT IN ACCOUNTS RECEIVABLE WITH AN ACCOUNTS PAYABLE CHECK
The following procedure should be followed to refund overpayments in AR. For this example, let us assume the following scenario:
1. An invoice is issued for $52.50
At this point, the following entry is booked:
Accounts Receivable 52.50
Revenue 52.50
2. A payment is received on that invoice for $102.50
Cash 102.50
Accounts Receivable 102.50
To apply this $102.50 payment in CASH RECEIPTS, apply $52.50 to the invoice on Screen 2, then apply the remaining $50.00 ONACT by entering this amount on a blank line. Post the cash receipts.
3. Go back to CASH RECEIPTS and post a negative cash receipt for $50.00, make this ONACT as well by entering it on a blank line in Screen 2.
Accounts Receivable 50.00
Cash 50.00
Go to CURRENT TRANSACTIONS in FILE MAINTENANCE, inquire on the two ONACT records and change the Apply to field to show the original invoice document number.
4. We need to issue a refund check for $50.00 from AP.
In Accounts Payable, enter a voucher for this customer, use the actual Cash Account in the account number field on Screen 2 of VOUCHER ENTRY. Post the voucher.
Cash 50.00
Accounts Payable 50.00
5. The payment is then issued.
Accounts Payable 50.00
Cash 50.00
The net effect of these transactions is debit to Cash and a credit to Revenue of $52.50.
