I am trying to figure out a way to issue refunds by writing a check from the checkbook. I don't know how to tender it from POS so that this works out right, espically when you add using the quickbooks link into the mix. Here is an example
A customer comes in and spends $1000.00 on concrete block, and writes a check. He over estimates and wants to return $200.00 worth of it - there isn't that much in the till in cash, so we want to write a check from the checkbook to cover this - how do you do the entries to make this work?
You'll need some sort of 'on account' tender type. Process the return normally and tender the refund 'on account'. When you write the check, go to the customer properties and do an account adjustment.
What we have done is to add a tender type- check, and name it "returns paid by check". it will then show up in your tender screen as a seperate entry. then you assign that line to a new chart of accts line in quickbooks ( say sub acct of undeposited funds) "returns paid by check. this will batch over your closout amt's, and let you aasign the negitive amt to your checkbook.
Add a "Bank" account to QB called 'Customer Refunds Payable'
You could make it an other payable type as well. But a bank type allows you to reconcile the account to zero each month/quarter to make sure that all customers have been issued a check. The account should carry a zero balance or in other words always use zero as the balance per bank.
In RMS Add an tender type of 'Refund by Check' and in the G/L setup link it to the account you setup in QB.
When a customer is to receive a co. check the Refund by check tender is used to increase (CR to increase liability) the Cust Ref Payble g/l account. Then when the check is issued in QB you would use the Cust REf Payble account to relieve the account (DR to decrease liability) in the check's g/l distribution section.
May want to setup an 'Other Name' or Vendor called Customer refund in QB. Issue all customer refunds using this name but change the name that prints on the check as your creating the check. If you manually issue the check use the Name created above but be sure to put the customer name in the memo of the check and in the memo of the g/l distribution.
I don't recommend using an A/R tender type. Adds an additional hoop to jump through with the account adjustment after the check is issued.
It would depend on how they do their reporting. If they net the discounts taken at the register against Gross sales then the "expense" has already been taken. It is possible that they are reclassifying the discounts to advertising, which on the surface would seem to be legit. But if they were to take the amount of discounts already netted against gross sales again as advertising, then they would possibly have an issue. It would be difficult for an LLC, partnership, or corporation to reconcile their books to the tax return as well.
Mike McCormick, CPA
I am not your accountant nor your client's and I am not offering accounting or income tax advice. Please consult your tax advisor for advice specific to your situation.
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