Best practice in Dynamics GP - How to process a payment to a customer who has overpaid?

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Posted on by Barry McGivern

Hi,

I'm interested in the Community's thoughts on the best practice approach to processing a payment from a Customer who has overpaid.

We are using the SOP module in Dynamics GP.

As always your help is greatly appreciated,

Barry

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MattPaulen 6,912 on at

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My first thought would be to just enter in the payment with the full amount. Then apply it to the invoice which would leave a credit balance on their account. Would you be needing to refund them the overpaid amount or would it stay on their account to be applied the next time they order something?

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Barry McGivern on at

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Hi Matt,

Apologies for the delay in replying - I've been off ill unfortunately!

We would want to refund them the overpaid amount in most cases, unless we knew they had an imminent order.

How would suggest we process the refund in that case?

Thanks,

Barry

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Victoria Yudin 22,769 on at

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Unfortunately, this requires 2 transactions: one to record the actual refund to the customer and another to update the customer balance so they do not show an overpayment anymore.

For the first transaction - I would use a Return transaction. This is typically the best way to record money going back to the customer. Take a look at this recent thread for more details: community.dynamics.com/.../191261

The debit would be to Account X (maybe a suspense account) and credit would be to cash.

For the second transaction - Enter a Debit Memo for the customer. Debit AR, credit Account X (the same one you debited with the Return transaction). Once posted, apply the overpayment sitting on the customer's account to the debit memo.

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L Vail 65,271 on at

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Hi,

Why wouldn't we use the Customer Refund Check functionality? The AR stuff would be corrected and a payables check would be in line to be printed.

Kind regards,

Leslie

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Ken Roy 490 on at

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Refund Checks is a separate license. Some of us have to do it the manual way.

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Victoria Yudin 22,769 on at

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What Ken said. :-)

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MattPaulen 6,912 on at

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But if it's GP 2013 or later then it would be under perpetual licensing where Refund Checks is included, no?

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Victoria Yudin 22,769 on at

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Matt,

Even if a company owns the module now, it may not be worth the setup and training for something that happens once a year. Also, if the refund is done with a credit card and not check, can you easily use Refund Checks for that?

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MattPaulen 6,912 on at

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Good points. Just wanted to throw it out there as another option if a check is needing to be cut to the customer or for any future readers of this thread.

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L Vail 65,271 on at

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Well Ken,

Gosh, the manual way is no fun at all :)

Kind regards,

Leslie

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