Credit Card refunds are different than other cash refunds! 

This document only describes a situation in which a credit card payment was received upfront and is more than actual revenue.  No adjustment to revenue is necessary.

 

Overpayment - no revenue effect.

 

This is done using Movers Suite and Dynamics-GP Bank Reconciliation.

 

1.   It is assumed the refund to the credit card company has already been processed.

2.   Create a sales/ invoice (Positive revenue) in Movers Suite for the amount of the overpayment/credit card refund. This will be done using an item code that goes to a clearing account.

3.   General Ledger accounts will be: debit Accounts Receivable, credit clearing account.

4.   In GP enter a Bank Transaction in the amount of the credit card refund, using a transaction type of Decrease Adjustment.

5.   GL accounts will be: debit clearing account, credit cash.

 

This method updates the customer and the checkbook.  AP is not involved.