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The Client Returns and Credits window is shown below and assists you in processing refunds and credits under a variety of scenarios.
***See it in action...Client Returns and Credits videos are available here. ***
Project/Order: Enter the Project or Order code you wish to give a refund.
Refund Type: Depending on the combination of the "Refund Type" and "Refund For" selections, various transactions will be created in Design Manager to process the refund or credit to your Client. ALL Refunds for Item Deposit or Invoice will create a new Invoice showing a Credit or negative amount due.
Select from the following Refund Types and Refund For options:
NOTE: ALL Refunds entered for Item Deposit or Invoice will create a new Credit (negative) Invoice. Deposits will be considered applied and will NOT reduce the total Proposal Deposit amount received. For Example: If a Proposal has a $500 deposit on it and you refund it, the Proposal will still show a $500 deposit received; however, this deposit will be considered applied and NO longer available for use.
Creating a Client Refund/Return:
1. Enter the Project/Order code of the client you wish to refund (search for the Project Code by clicking the Search Button or Alt + S).
2. Select the Refund Type.
3. Select what the Refund is For.
4. Optionally enter the latest Proposal or Invoice Number that the Item can be found on to narrow your Item list.
5. Tag the Item(s) to Refund.
6. If a full refund will be given, you will see that amount on the grid in red under the Amount to Refund column for each item (this amount will include any sales tax). The Total Refund for ALL items tagged will appear at the bottom of the window in red in the Total Refund field. If this amount is correct, continue to Step 8 below. If you wish to refund the client for less, you will need to Edit the Amount to Refund - see Step 7.
7. To refund an amount different than the Available Deposit or Total Invoiced, you will need to select the Edit button. Then Tag the Override box.
a. To Edit the amount of Deposit to Refund, change ONLY the amount in the Deposit to Refund field at the bottom of the Override Refund Amount window (be sure to use Positive values).
b. To Edit the amount to refund on an Item Invoiced, Edit the proper component type(s) Price to Invoice column amount (be sure to use Positive values). If the Item is taxable, the system will automatically enter the Taxable Amount for you. Then select Ok to close the override window. Review and confirm the Amount to Refund column is now correct.
8. Input the Date and Fiscal Month you wish to have the refund or credit recorded in Design Manager. Depending on the selected Credit Type, this will be the date of the Operating Expense used to create the Check for the Client, the date the refund is reflected in the Checkbook, or the date of the Credit Client Invoice.
9. Optionally include a Transaction Description of the refund or credit for your future reference. This is an internal description, that can optionally be printed on the Client Statement.
10. Once your Total Refund amount is correct, click the OK button to process the credit or refund. Design Manager will always warn you prior to processing the credit or refund at which time you can click the Cancel button to abort the process, if deemed necessary. When processing the credit or refund any other entries, such as Cash Receipts or Vendor Invoices, that are waiting to be posted, will be placed on hold so that the return or credit can be processed.
a. If the On Client's Card Refund Type was selected, a window for you choose the Credit Card or Account to refund will appear. Make your selection and choose OK.
Once the refund is processed, Design Manager will ask if you wish to go to the entry it created for your credit. Select Yes to go there, or No to close the credit.
If you selected the Refund Type of On Account and wish to use this Credit on a new Invoice, or need to use the credit against the Balance Due from the original Invoice (invoice was not paid in full), you can apply this credit using the steps below.
Applying a Credit on Account:
If you have processed a return for an Item Deposit or Invoice and On Account (open A/R), a open Credit Invoice was generated.
1. To apply this credit, go to the Cash Receipts Window - New Tab and add a new Cash Receipt.
2. Tag the Invoice you wish to apply the Credit to. If the Balance Due is more or less than the amount of you Credit, you will need to Edit the This Payment Amount to match the Credit.
3. Also Tag the Credit Invoice that was created by the return. (if the Credit is more than needed to pay the other Invoice, Edit the This Payment Amount to match).
4. Choose OK and post the $0.00 Cash receipt.
The net effect on your cash balance will be zero, but this will close the Credit Invoice and properly reduce the balance due on the new Invoice. You can now optionally reprint the new Invoice with the Show Payments option to indicate the true balance due to your Client.
Click here to watch a video on the steps above.