Q.01 How do I refund an Invoice?
A.01 There are a few places that one can actually go to
reverse an invoice transaction. From the main menu, choose Lists...
Accounts Receivable... Invoices... and then type the invoice number.
Once highlighted, press the <Delete> key and then press <Enter>.
You can also highlight the invoice directly from the Customer Care screen
and press <Delete> and then <Enter>. You can
also add a toolbar shortcut item on the main program's toolbar for
Q.02 My customer wants to return just one item from an invoice, How
do I accomplish this?
A.02 The steps are exactly like refunding the entire invoice,
except you will be clearing the quantity field to 0 on items not being
Q.03 My customer needs his account balance adjusted to zero dollars
owed, What do I need to do?
A.03 When refunding outstanding invoices associated to a customer,
the account balance is automatically adjusted as the invoice is reversed.
Simply refund all outstanding customer invoice balances, and the customer
account balance will become $0.
Q.04 My customer demands a refund back, but ManageMore is not allowing
me to give him back cash? Why?
A.04 As a security precaution, ManageMore does not allow
an employee to give cash back to a customer that did not purchase the
item originally with cash. This avoids the possibility of check
or credit card problems that may arise weeks later... longer after a
customer would have received the cash.
Q.05 My customer has a credit balance and would like his overpayment
returned. What do I need to do?
A.05 ManageMore will allow a negative payment to be applied
to a customer account to offset the customer's negative balance and
properly reflect the accounting.
Q.06 When is the best time to run my customer finance charges?
A.06 Depends on the method used for computing the
finance charges. If you use the "New Past Due Invoices" method
for finance charges, then it does not really matter when you
generate and post finance charges.
However, if you use the
compounded finance charge method of "All Unpaid Invoices", one should attempt
to run finance charges the day after the majority
of invoices become past due. This will ensure that all late
paid accounts are calculated as part of the finance charges.
In other words, if your last
billing cycle had generated invoices due by December 10th, then finance
charges should be generated on December 11th of that month (or close
to it). If a grace period has been defined in ManageMore, then
you should take that into account as well and generate finance
charges immediately after the due date plus the grace period.
Q.07 What is the difference between generating finance charges
based on "New Past Due Invoices" versus "All Unpaid Invoices"?
A.07 There are two basic principles in how you can
apply finance charges using ManageMore( In some respect, it is
similar to the varying methods of how to compute interest on a
loan). The difference between the two methods is in how they
qualify the customer invoices that will receive the finance charges.
New Past Due Invoice method computes the customer finance
charge by summing all invoice balances that were not satisfied
before the invoice due date plus the pre-defined grace period.
This means that invoices with no balance at the time of generating
finance charges, could still be calculated in the finance charge
equation if the customer failed to make payment on time. One
other aspect to this finance charge method is that it will consider
an invoice for finance charge calculation only on time. It does not
compound finance charges on the same outstanding invoices that it
used on previous finance charge postings.
All Unpaid Invoice method computes the customer finance
charge by summing all outstanding invoice balances only that were
not satisfied before the invoice due date plus the pre-defined grace
period. This method is sensitive to when you actually post the
finance charges because it does not take into account any invoices
that were paid late. Furthermore, this method will
re-calculate finance charges over and over again on the same
outstanding invoices each time you post finance charges. It is
imperative that you write-off bad debt at some point or the finance
charges will continue to compound over the course of time.
Q.08 I decided to generate finance charges for the first time.
However, it seems to have created a very large list of customers for
finance charges. Why?
A.08 Users who have been using ManageMore for some time
and decided to generate finance charges for the first time tend to
exhibit a large finance charge list. This is because
ManageMore is detecting every invoice that was ever paid late in the
past and has not had a finance charge imposed. This could be
hundreds or thousands of invoices from months past that were not
charged a finance charge (money you have been losing out on by not
billing your customers a late fee in the past).
To correct this
situation, a setting exists to ignore all invoices from a certain
period back. This check box setting is on the finance charge
criteria window and is labeled "Skip Invoices with due date more
than xxx days". You will only need to use this setting the
first time you generate finance charges. Subsequently,
ManageMore will keep track of all new current invoices that will
require finance charges.
Q.09 Can I change the finance charge grace period whenever I
A.09 Yes and No. We recommend that you make a
decision early on with grace periods and stick to it. Changing
grace periods in between months while using the "New Past Due
Invoice" method of calculating finance charges, can inadvertently
cause some customers to get finance charges while others not. Once a
customer is late on payment, you cannot successfully alter the grace
period in order to trick the finance charge process into skipping
the customer account from consideration.
If you must change this value, try to do so immediately after
your last posting of finance charges.
Q.10 What is the difference between reversing a
payment posted on an invoice and actually performing a refund on an
A.10 Reversing payments create a positive accounts
receivable effect on a customer account, while refunding/reversing
invoices creates a negative accounts receivable effect.
Basically, reversing a
payment should be done when dealing with accounts receivable
situations where the invoice balance is needed to be restored to its
original state. Normally, the common reason for reversing a
payment would be due to a check with insufficient funds (i.e. a
bad/bounced check). It could also be done if a payment was
posted to the wrong account, however, ManageMore has a feature for
correcting this data entry problem without having to reverse and
repost the payment.
In General, payment reversals should only be done if your goal is
to bring the customer account balance back to its original amount.
Reversing payments is mostly a procedural step associated with
businesses that produce incidental/recurring billing statements and
deal with mailed-in payments.
Since most sales are point-of-sale related (i.e. sales invoice
which is paid immediately ), the more common way of partially/fully
reversing a customer's charges is to create a sales refund. Usually, the customer is requesting some or all
payment back on a particular sales invoice. Refunding an invoice
deals creates a credit by internally creating an offsetting
transaction. This gives you the ability of partially or
totally crediting an invoice to the customer account or directly
paying back the credit due to the customer. This is quite common for
situations when customers return some or all items from a previously
generated invoice. A sales refund also handles any inventory
related returns at the time of saving the transaction.