Customer Refund

 
 
First create a Debit Memo of Transaction Type ‘Customer Refund’ which has amount
equal to the refund amount. This will increase the customer balance by the debit memo
amount. Give the relevant quantity (1) and unit price (debit memo amount).
 
Responsibility: Yodlee US AR Super User
Navigation: Transactions→Transactions
 

 
 
Click on Line Items as shown above.
 
 
 
 
Enter the Quantity as 1 and amount equal to the refund amount (Unapplied amount) in
the Unit Price Column as shown below.
 
Click on Distibutions.
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enter the Revenue account code combination set to AP Clearing as shown below.
Save the changes.
 
 

 
 

Close the tabs until you reach transactions window as shown below.
Click on radio button Complete as marked below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction is now complete showing the Line and Total amount as marked below.
 

 
Click on Tools→View accounting from the menu bar. The following entry will be
generated.
 
Receivable (11210) a/c Dr 2275.18
           To Revenue (11405) a/c Cr 2275.18
 

Apply the Debit memo to close the unapplied amount lying on the customer’s account.
 
 

 
Once the application is completed Click on Tools→View accounting from the menu bar.
The following entry will be generated.
 
Unapplied a/c Dr 2275.18
    To Receivable a/c Cr 2275.18
 
 
Define the customer to whom you want to give refund as Supplier in Accounts Payable.
 
Responsibility: Yodlee US AP Super User
Navigation: Suppliers→Entry
 
 

 
Click on Sites
 
 
 
Enter an Invoice for this supplier in AP for the refund amount
 
 

Navigation: Invoices→Entry→Invoices
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enter the Charge account code combination similar to the code combination entered
while creating Debit Memo in Accounts Receivables as shown below.
 
Please note that the Account code combination and GL Date should be as same as the
code combination and GL Date entered in AR.
 

 
Once the invoice is validated and accounted the following accounting entry will be
generated.
 
Charge (11405) a/c Dr 2275.18
  To Liability (21210) a/c Cr 2275.18
 
Now make payment for this invoice from AP (to the customer). AP passes the following
entry:
Liability (21210) a/c Dr 2275.18
       To Cash (11160) a/c Cr    2275.18
This process will offset the debit and credit entry from both the subledgers (AP&AR).
Run the GL Transfer from both the subledgers (AR and AP). Since we have given the
same GL date both in AR and AP it will generate the accounting entries in GL on the
same date showing the debit entry from Payables and Credit entry from Receivables in
Account Analysis-Sub ledger detail report.
The following unposted entries will be generated both from Payables and Receivables
modules. Review and post accordingly. Run the Account Analysis - Subledger Detail
(132 char) for 11405(AP Clearing).