How do you handle overpayments, checks that don’t clear the bank, or checks entered for the wrong account? Make a payment adjustment! Payment adjustments can be used to refund or reverse payments.
When a client pays more than is due, you may want to refund part of the payment. In order to refund a payment, the payment must have been final billed and updated. Additionally, only the unapplied portion of a payment can be refunded.
In some situations, you may need to reverse the entire payment. Typically, this is because either a check didn’t clear the bank or a payment was entered to the wrong account. Like refunds, a payment can only be reversed if it has already been final billed and updated. However, payments can be reversed regardless of whether a portion is currently unapplied or not.
When refunding or reversing payments, the following integration options are available, when applicable:
- When you are set up to process credit cards, and the payment was originally processed via credit card, you will be prompted whether or not to process the adjustment through the processor.
- You will have the option to write a check for the amount (when integrating with AP), create a payment to another client, deposit the amount into client funds, or just record the adjustment.
- When integrating with GL, you will have the option of specifying a date for automatic journal entries.
To reverse or refund a payment
- In the Quick Launch, search for and select “Payment Adjustment.”
- Select the Client ID.
- In the Reference field, select the payment you are adjusting.
- In the Adjustment Information section, select Reversal or Refund.
- Enter the desired Adjustment Date. This date will be used for reports.
- If you selected Refund, enter the desired Adjustment Amount.
- Click OK.
- Click Yes to continue.
- In the Payment Adjustment Options window, select whether you will be writing a check for the adjustment, just recording the adjustment, creating a payment for another client, or depositing the adjustment into Client Funds.
- Click OK.
- If you are integrating with GL, and did not select the option to write a check, an Adjusting Journal Entries window will be displayed. Select the date to use for adjusting GL journal entries.
- Click OK.
- In the Payment Adjustment Description window:
- If you want a transaction to be saved to the Fee file, enter a Description and click OK.
- If you do not want a transaction saved to the Fee file, click Cancel.
Payment adjustments provide an easy way to refund an amount back to your clients, or to reverse payments when a mistake was made.
When you need to refund or reverse credit card payments, you want to be able to do it with the least amount of hassle. Tabs3 Billing and Trust Accounting Software (TAS) are designed to automatically issue a ProPay refund or reversal when appropriate.
Knowledge Base Article R11708, “Credit Card Refund Best Practices,” provides information on how ProPay handles credit card reversals and provides processes for reversing, refunding, or deleting credit card payments or transactions in Tabs3 Billing and TAS.
Be sure to check out this article so that you are using the recommended methods to refund or reverse ProPay credit card payments.
Our Knowledge Base can be accessed 24 hours a day, 7 days a week, at support.Tabs3.com. You can also access our Knowledge Base while in the software by selecting Help | Internet Resources | Knowledge Base.
