--- title: "Issue: Processing Credit Card Refunds in Sage Accpac" description: Issue Accpac Accounts Receivable does not allow negative cash receipts so if your credit card deposit for the day included a customer refund a neg --- [866.436.3530](tel:+8664363530) | [** Customer Portal Login](https://na.myconnectwise.net/support/index.htm?Company=equationtech) [Speak With an Expert](https://www.equationtech.us/speak-with-an-expert) [![Equation Technologies - Sage Business Partner | San Diego](https://www.equationtech.us/hs-fs/hubfs/Redesign_Images/logo.png?width=230&name=logo.png "Equation Technologies - Sage Business Partner | San Diego")](https://www.equationtech.us/) - [Sage Services](https://www.equationtech.us/sage-services) - Products We Support - [Sage 300](https://www.equationtech.us/sage-services/sage-300-cloud) - [Sage Intacct](https://www.equationtech.us/sage-services/sage-intacct/) - [Sage CRM](https://www.equationtech.us/sage-services/sage-crm) - [Sage Payroll](https://www.equationtech.us/sage-services/sage-payroll) - [Sage HCM](https://www.equationtech.us/sage-services/sage-hcm-software) - [Sage FAS](https://www.equationtech.us/sage-services/fixed-assets) - [Sage Intelligence](https://www.equationtech.us/sage-services/sage-intelligence) - [Sage Enterprise Intelligence](https://www.equationtech.us/sage-services/sage-enterprise) - Services We Offer - [Software Selection](https://www.equationtech.us/software-solution-selection) - [Implementation](https://www.equationtech.us/sage-services/erp-implementation) - [Customization](https://www.equationtech.us/sage-services/customization) - [Support](https://www.equationtech.us/sage-services/support) - [Training](https://www.equationtech.us/sage-services/sage-training) - [Sage Cloud](https://www.equationtech.us/sage-services/hosting) - [Upgrades](https://www.equationtech.us/sage-services/upgrades) - [Extend Sage](https://www.equationtech.us/sage-integrations) - [Magento eCommerce](https://www.equationtech.us/sage-integrations#magento) - [ADP](https://www.equationtech.us/en/sage-300-sage-intacct-payroll-powered-by-adp) - [Aloha POS](https://www.equationtech.us/sage-integrations#aloha) - [Salesforce](https://www.equationtech.us/sage-integrations#salesforce) - [TimeClockPlus](https://www.equationtech.us/timeclockplus) - [Other Solutions](https://www.equationtech.us/other-solutions) - Industries - [Distribution](https://www.equationtech.us/distribution-management-software-solution) - [Education Nonprofit](https://www.equationtech.us/education-nonprofit-accounting-software) - [Financial Services](https://www.equationtech.us/financial-services-software) - [Franchise](https://www.equationtech.us/franchise-management-software) - [Healthcare](https://www.equationtech.us/healthcare-finance-software) - [Hospitality](https://www.equationtech.us/hotel-restaurant-accounting-software-solutions) - [Metal Processors & Distributors](https://www.equationtech.us/erp-for-metal-industry-businesses) - [Nonprofit](https://www.equationtech.us/nonprofit-accounting-software) - [Professional Services](https://www.equationtech.us/professional-services-software) - [SaaS & Technology](https://www.equationtech.us/erp-software-for-technology) - [Resources](https://www.equationtech.us/sage-software-resource-library) - [Technology Blog](https://www.equationtech.us/technology-blog) - [Training](https://www.equationtech.us/sage-services/sage-training) - [Online Videos](https://www.equationtech.us/sage-300-erp-accpac-tutorial) - [Case Studies](https://www.equationtech.us/case-studies) - [About](https://www.equationtech.us/about-us) - [Meet The Team](https://www.equationtech.us/management-team) - [Partners](https://www.equationtech.us/partners) - [Careers](https://www.equationtech.us/careers) - [Contact](https://www.equationtech.us/contact) This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. # Issue: Processing Credit Card Refunds in Sage Accpac **twitter **linkedin **facebook Issue: Accpac Accounts Receivable does not allow negative cash receipts so if your credit card deposit for the day included a customer refund (a negative cash amount), your Receipt batch will not balance to the tape from your credit card machine or online virtual terminal. Solution: > There are 2 ways to handle the entry for a credit card refund: > > **Method 1:** > > Refund when the entire amount is credited:  > > - Process the refund as a Returned Check in Bank Services. > - This will credit your bank account and debit the A/R customer account, reactivating the invoice for payment. > - Process a credit note for the merchandise returned in Order Entry (you can process the credit note first, then process the returned check). The drawback in this method is that the system would track this statistically as a returned check, not a refund, and the amount will appear on the returned deposit tab of your bank reconciliation. However, the transactions would be recorded to the proper GL accounts. > > > Note: This method can only be used provided that the refund was for the exact amount of the original charge. > > A partial credit card refund (not the entire invoice balance): > > - Process the refund as an adjustment in AR and Bank Services. This method uses the suspense account as a clearing account to manage the proper GL transactions. It does not record the refund (statistically) as a returned check, nor does it note in any statistical way that the customer received a refund, however, the customer transaction history would show that the adjustment for the refund had occurred. > - Process a credit note for the merchandise returned in Order Entry (process the credit note first, then process the adjustment). > > > Note: You must use this method if the refund is not the exact amount of the original charge. > > > > **Refund Method 2:** > > > > - If using ACCPAC Order Entry, Process the credit note in Order Entry. > - Run Day End Processing before you proceed with the remaining steps. > - Post any resulting AR batches (invoices and receipts if applicable).  > - In AR, open a new Adjustment batch, giving it an appropriate description in the header (i.e. credit card refunds). > - In the detail screen, after typing an entry description, choose the adjustment date to be the same as the date of the refund, then enter your customer number. > - Enter a reference and description that is meaningful. > - Use the Finder in the Document Number field to choose the credit note that the refund applies to. > - Leave the Payment Number field as is. > - Leave the "Dist Code" blank unless you have setup a AR distribution code called REFUND which is coded to a GL suspense account. > - Enter the GL account number for your Suspense account. > - The amount is entered as a credit amount, increasing accounts receivable. > - Save the entry (if you have more than 1 refund, you can enter the next in this batch). > - After all entries are finished, print the batch listing and verify that all is correct. > - Post the batch. > - Print the posting journal. > > > > > This entry should debit accounts receivable and credit the suspense account. > > - One time setup: > - Go to Common Services, Bank Services, Setup, Transaction Types > - Enter a new transaction type called REFUND. > - Code it to GL account Suspense. > - Add > - Close > - Under Bank Reconciliation choose Post Entries. > - Choose the bank the refund was processed through. > - Use the REFUND Transaction code or a GL account if you skipped the one time setup step. > - Make sure your entries date matches the adjustment date. > - The entry will be entered in the credit column (to credit the bank account). > - Select Post to update the entry in the bank module and the General Ledger. > > > > > This entry will debit the Suspense Account and credit the bank account. ### Related Articles ##### [Sage 300 & Windows 10 End of Life: What You Need to Know](https://www.equationtech.us/sage-accpac-blog/sage-300-windows-10-end-of-life-what-you-need-to-know) There’s been a lot of conversation lately around Windows 10 end of life and what that means for... ##### [From Start-Up to Quarter Billion – How Sage 300 Scaled Success](https://www.equationtech.us/sage-accpac-blog/from-start-up-to-quarter-billion-how-sage-300-scaled-success) We also have a [video version](https://drive.google.com/file/d/1ssdM9iHt6Wz86A-VDvAER03NdXkAodg9/view?usp=sharing) of this article, where you can hear directly from one of our ERP... ##### [How to Simplify Payroll and Job Costing with Sage 300](https://www.equationtech.us/sage-accpac-blog/how-to-simplify-payroll-and-job-costing-with-sage-300) Getting payroll to play nice with your job costing system is like fitting a square peg into a round... ## Need Help Now? 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