There will be occasions when you need to pay back monies received from a customer. Reasons you may give a refund include:
-
Your customer has returned or has not received goods or services they have paid for.
If you are giving a refund for goods or services that the customer has paid for you must first enter a credit note record on the system (even if you do not provide the customer with a credit note document).
- Your customer has overpaid for goods or services.
When you perform a customer refund you enter the amount to be refunded and post it to the customer's account. Sage 200 then updates the appropriate account balances. While entering the refund details you can also allocate the refund to a credit note or payment you have already received.
Refunds and credit notes
If the refund is for goods or services for which the customer has paid you must first create a credit note record that the refund can later be allocated to.
| Transaction | Allocated to | When this occurs... |
|---|---|---|
|
Invoice Credit Note |
Payment Refund |
The customer has placed an order and paid for it but the order is then to be reversed. In this scenario:
|
What happens when you make a refund
When you post a refund to a customer account Sage 200 makes a number of updates:
- The customer's account balance is updated (increased) by the value of the payment or payments posted (including discount if appropriate).
- The bank account (for the balance sheet) in the Nominal Ledger and in the Cash Book, if used, is credited with the value of the payment.
- The bank account (for the profit and loss) is updated with the value of any charges, if applicable.
- The settlement discount allowed account (for profit and loss) in the Nominal Ledger is credited with the value of the settlement discount, if included.
- The sales control account (for the balance sheet) in the Nominal Ledger is debited with the value of the payment plus any discount.
- Transactions are allocated if allocation has been selected.
- Any currency adjustments are posted, if applicable.
Enter multiple transactions in a batch or a group
If you have many transactions to record you can enter them in either a batch or a group.
When you record a batch of transactions you create a header record which records the number of individual transactions and the total value of all the transactions in the batch. Sage 200 ensures that the number and value of the entered transactions matches that stated on the header file. Enter batch transactions if you want this extra check on the values being entered. All transactions are posted individually to your bank,
When you record a group of transactions you post only a single amount to your bank but individual transaction amounts to
Refunding a customer who has no customer account
When you sell to a customer who has no customer account on Sage 200 you enter the receipt as a cash (nominal) receipt (with or without VAT as appropriate).
There is no specific refund facility to reverse these payments so to record a refund you need to enter a cash payment (with or without VAT as appropriate).
What do you want to do?
- Record a single customer refund
- Enter refunds as a batch of transactions
- Enter a group of refund transactions
- Record a cash (nominal) payment
Next steps
- Where the recorded refund has a related credit note you need to allocate the two. There would also be an initial invoice and payment in this scenario and you should ensure they are allocated.
- When the original customer payment and the refund appear on your bank statement you can perform a bank reconciliation.