Issuing an AR Refund Check

StreamV allows you to issue a refund check to a customer by identifying the invoices that you wish to refund in the AR Invoice Lookup program.  You may tag one or more than one invoice in the program.  Once you have tagged the invoice balance or balances to be refunded, and select the  Issue Refund Check option from the More Menu, the system verifies that.

•      The invoices to be processed are all in your house currency.  Refunds may only be processed against invoices when the invoices are in your house currency.

•      The currency on all invoices being processed is the same.

•      The company name on the invoices being processed is the same.  The system will only allow you to issue a refund check when all invoices are for the same company.

•      The selected invoices have a negative balance.  The system will only allow you to issue a refund check against negative invoice balances.

If the selected invoices do not meet the above criteria, the system will display an error message and it will not allow you create a refund check.

Once the system has verified that the invoices selected in the AR lookup are valid, the system displays the Account Description Lookup program.  The Account Description Lookup program lists the valid cash accounts that have been set up in your general ledger, and it allows you to select the cash account from which the refund check will be issued.

Once you have selected a valid cash account from the list, the system will prompt for the check number to be used for the refund.  This check number should be an available un-printed check for the account that is selected for the refund.

After the check number to be used has been specified, the system will total up the invoice balances to be refunded and verify that the balance is not 0. 

If the balance is zero, the system will display an error message and it will not issue the refund check.

If the refund check balance is not zero, the system performs the following actions.

•      A record is created in the Bank file to record the refund check issued to the customer.  This Bank record has a document type of R (refund) and a source of AR (accounts receivable).  The Bank record is created in the cash account selected for the refund and a unique Transaction number is assigned to the Bank record by the system.  The amounts in the Bank record are set to the total amount refunded to the customer.  These amounts are written as a negative number.  The customer on the Bank record is set to the company in the invoices being refunded.

•      A journal entry is written to record the Bank transaction.  This journal entry has a source of AR, and it is posted to the Cash account selected for the refund, and the accounts receivable account that was used for each invoice being processed (based on the AR Autopost number stored in each invoice).

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Printing an AR Refund Check