Manual Credit Card Processing – Credit and Refund Processing

The following steps are used to process a return for items that were invoiced using  manual credit card terms.  Returns against manual credit card orders can be processed using the same manual credit card terms, or they can be processed using a different terms code (such as Net30), depending on whether the customer wants the credit to be applied to the credit card.  If you will be issuing a credit card refund, you should use the same manual credit card terms that were used on the original invoice..

      Use the RA System or the Credit Invoice option to create a credit memo for the items being returned.  This will create an open credit memo (negative invoice) on the customer account.

      Verify that you have a credit card refund clearing account set up in the general ledger.  If the account does not exist it should be created.

      Make sure that the credit card refund clearing account is set up so that you can adjust accounts receivable invoices to it (the Disallow AR Adjustment flag in the Account Description record should be set to unchecked or 0.

      Use the AR Invoice Adjustment program to write off the negative balance credit card invoice to the Credit Card Refund Clearing account – this will debit accounts receivable, and credit the refund clearing account.

      Use your 3rd party software or hardware to process a credit card refund transa

      Use the Bank Management program or the Journal Entry program to