Tuesday, November 22, 2011

Refund Cash to Customer

Refund Cash to customer

In Dynamics GP have option for "Refund to Customer" (Transactions-->Sales-->Refund Checks) but  in small scale company it is not possible to make payment through checks for every customers.

When we create Refund from Dynamics GP it transfer Receivable balance to Payables Management creating checks for customer.


1) Received access payment from customer through credit card and need to return cash back to him.

2) Access Payment Received from customer and need to pay back cash.

Make Debit Memo from Transaction-->Sales-->Receivable Transaction-->Debit Memo and apply to Invoice.


Debit : Accounts Receivable (Refund Amount)
Credit : Accounts Receivable Misc

With above distribution your Receivable will be get zero.

To Bank:

Transaction-->Financial -->Bank Transactions

Change entry to "Decrease Adjustment" and enter the amount for Refund.


Debit: Accounts Receivable Misc (Refund Amount)

Credit: Cash A/c

Simple Cash Refund entry without Checks(Cheques)

Sandip Jadhav