Print Friendly, PDF & Email


Refund checks are typically written for two different circumstances:

  1. A customer returns merchandise for a refund, or

  2. A customer overpays their account balance.

Creating a Refund Check for Returned Merchandise

Step by Step

When a customer returns merchandise and expects a refund check, a credit memo is created to record the return of merchandise, then the refund check is created directly from that credit memo.

The preferred way to create the credit memo is from the original invoice or sale.  Open the original invoice or sale, then go to Menu | Create | Credit.

After confirmation, a new credit memo will appear.  Creating the credit memo from the original sale or invoice has several advantages:

  1. The memo automatically contains a descriptive note in the memo field,
  2. The customer information is automatically populated, and
  3. The merchandise available for return is automatically proposed in the line item grid.  Simply click the red “X” to delete any items not being returned.
  • Note: When a credit memo is created from an existing Sale or Invoice, the memo field is automatically populated, the customer is automatically selected, and the merchandise available to be returned is automatically proposed.  Simply click the red “X” to delete each item not being returned.

Now the refund check for the returned merchandise can be created.  On the credit memo, click the “Refund” button and then choose your method for refunding. For the purposes of this help topic, choose “Refund Check”.

The Write Checks form will appear, having appropriate information about the transaction already proposed.

The refund check can now be produced just as any other non-payroll check.  See related topics below for more information.

Creating a Refund Check for an Overpayment

Step by Step

When a customer overpays on their account balance, two options are available:  return to the New Payment form and somehow apply all of the payment toward invoices (if possible); or record the payment the way it is.  If the choice is made to record the payment the way it is, the amount of the overpayment is applied on the customer’s A/R balance as a negative value and nothing more.  A credit memo is NOT generated under this circumstance.  A credit amount for the overpayment is simply entered on the customer’s account.

    1. To create a refund check for the amount of the overpayment, go to the main menu and click Banking | Write Checks (or use the keyboard shortcut Ctrl+W, or the Write Checks toolbar button).

    2. Select the customer who overpaid in the “Pay to the order of” field.  If no customers appear in the list, your Total Office Manager administrator will have to go into preferences and uncheck the “Do Not Include Any Cust:Jobs in Checks Pay To List” checkbox from the Checking tab.

    3. Enter notes in the Memo field.

    4. Select your appropriate A/R account in the “Account” column.  If the account does not appear on the list, your Total Office Manager administrator will have to disable “Smart Account Selection Filtering” by uncheck it’s checkbox in preferences.

    5. Enter the value of the refund in the “Amount” field.

  1. Save & Close
  2. Finally, go to Customers | Receive Payments. Select the Customer in question. You will notice that the refund check you created appears. Click the checkbox next to that check and then use the “Set Credit” button to apply the outstanding credit (overpayment) to the check.