Apps9: Customer and Supplier refunds - What is the correct way to process through the cashbook?
Currently, when we need to refund a customer the credit control are able to raise a customer offset which puts the value of the refund into the cash book ready to go through the bank.
However, to refund we need to raise a payment and this is being performed through a one-time supplier payment. We cant code the supplier payment to the bank account so instead we are having to use a clearing account.
Its a similar story when we receive a refund from a supplier.
Am trying to avoid the additional step of having to go through a clearing account.
What is the best way to process these types of refunds through IFS? I can look into making a manual payment direct from the bank for the customer refund.. but is there a method i am missing?
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Hi,
My recommendation for customer refunds is to use the customer repayment. You simply process a repayment. No more need to offset with AP / AR or do a supplier payment.
Using a supplier to pay a customer is how we had to do thing before customer repayment.
The process for the repayment is very easy. First you need a payment method on the customer (bacs for example). Then in the customer payment proposal you use the option to create a customer repayment. IFS will select customers with a credit balance. But if your only repaying an invoice (credit) you can manually add a customer / invoice record. The remaining process is nearly identical to AP automatic payment process.
If paying by check you need to set up the payment document series just like we did for supplier checks. This is in payment doc basic data see repayment check. If doing repayment via checks we can set IFS to use the same check numbers as we do for suppliers.
If SOD (Segregation of duties) is important, its common that AR / Credit would initiate the process but AP would complete the flow by completing the customer repayment.
Or IEE
It’s great functionality. I believe it was added in apps 8, so it will be an apps 9 (thanks for adding version number).
Best regards,
Thomas
Hi Tom
Alan Stewart here.
I hope all is well with you.
Tom, just a quick couple of questions on the Customer Payment Proposal functionality.
1)If the repayment is by Payment Method Check is it correct that a B Type (Payments Received) Voucher is created at the end of the process?
2)If the repayment is by EFT etc. where do you set this up?
It was easy to set this up for Check under Payment Documents/Customer Repayment Check
Thanks
Alan
Hi Alan -
All is well, thanks for asking.
I believe the voucher type B is correct, this is a customer payment transaction.
I don’t believe the EFT would be supported, you can try. I’m mostly certain that if doing EFT and a payment file is generated that the file would not be created. - Only certain formats were supported for the customer repayment. For North America checks and ACH is supported. You can test, by setting up the customer payment method as EFT - adding the electronic payment information on the customer (just like on the supplier). Then doing the same test as you did for checks but paying via EFT.
Best regards,
Thomas
Thanks Tom
Appreciate the quick response and help, as always!
