Refunding a Credit on a Customers Account in Sage 100

Steps to refund a credit on a customer’s Sage 100 account.

There may be times when a customer has overpaid, or a credit has been issued for a fully paid invoice. Sometimes the customer is okay with leaving the open credit; others want their money refunded. How would one go about such a task?

Typically, in Sage 100 two actions need to occur – the first is to null the open credit; and the second is to issue payment to the customer.

View this Sage 100 step by step software tip with individual screen shots below.

To zero the balance on the open credit, one way would be to create a zero-dollar cash receipt.

• Access Accounts Receivable > Main > Cash Receipts Entry
• Create a Batch, if Batches are enabled. Create a Deposit.

• The Bank Code won’t matter. Se the Deposit Date to the date you decide to issue to refund.
• Select the customer to whom the refund is to be issued. Enter something meaningful in the Check No. field. Leave the Amount Received at ZERO.

• On the Lines Tab, Select the Credit Memo(s) to be refunded. On the last line, change the Line Type from Invoice to GL Account.

• Pick any GL account (this account will be used to record the payment, so the net activity should be zero after the payment is issued).

• Once the account is selected, the Amount Posted will reflect the balance to be cleared from the open credits.
• Post this transaction. The Credit Memo(s) will be adjusted to a zero balance.
• Create a Payment via Accounts Payable > Main > Manual Check and Payment Entry.
• Create a Batch. Select the correct Bank Code and click the Printer icon next to the Check No. field.

• Enter the Check Date and Check Amount. Enter NOF (Not on File) at the Vendor No. field.
• Change the NAME to reflect the proper payee.

Note: This check will NOT have an address on it, as the NOF vendor shouldn’t exist in Vendor Maintenance/Inquiry.

• Click on the Line Tab.
• Select the “Pound/Arrow” button in the upper left.

• Select the SAME GL account used in the Cash Receipts transaction above.

• Accept the General Ledger Distribution and Accept the Check Entry.
• Make sure the correct Form is selected and that the next Check Number is correct.

• Print the check – if it looks good, update by posting the Manual Check Register.

There are other possible routes to processing a customer refund. This is one of the many ways to accomplish this task.

If you have questions or would like assistance refunding a credit on a customer’s account in Sage 100, please contact our Sage 100 support team at 260.423.2414.

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