Credit Card Refunds: Process Activity

The following activity will walk you through the process of processing a refund for a credit card payment.

Story

Suppose that on January 30, while reviewing customer payments, the accountant of SweetLife Fruits & Jams found that HMBAKERY overpaid $21 for one of the invoices. Acting as the SweetLife accountant, you need to process a refund of $21 to close the payment.

Configuration Overview

In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity to be performed:

• On the Accounts Receivable Preferences (AR101000) form, the Hold Documents on Entry check box has been selected in the Data Entry Settings section.
• On the Customers (AR303000) form, the HMBAKERY (HM's Bakery & Cafe) customer has been defined.
• On the Payments and Applications (AR302000) form, a $490 payment with the available balance of $21 has been created.

Process Overview

In this activity, you will disable the Integrated Card Processing feature on the Enable/Disable Features (CS100000) form. On the Payments and Applications (AR302000) form, you will open a customer payment and create a Refund document for it by clicking Refund on the More menu. You will then release the refund and review the original payment with the invoice and the refund applied to it.

System Preparation

To prepare the system, do the following:

1. Launch the MYOB Advanced website, and sign in to a company with the U100 dataset preloaded. You should sign in as Anna Johnson by using the johnson username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the MYOB Advanced screen, make sure that the business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.
3. On the Company and Branch Selection menu, on the top pane of the MYOB Advanced screen, select the SweetLife Head Office and Wholesale Center branch.

Step 1: Disabling the Integrated Card Processing Feature

For the purposes of this activity, you need to disable the Integrated Card Processing feature to avoid the processing of credit card transaction by the processing center. To disable the feature, do the following:

1. Open the Enable/Disable Features (CS100000) form.
2. On the form toolbar, click Modify.
3. In the Third Party Integrations group of features, clear the Integrated Card Processing check box.
4. On the form toolbar, click Enable.

Step 2: Creating a Refund

To create a refund for the credit card payment, do the following:

1. Open the Payments and Applications (AR302000) form.
2. In the Reference Nbr. box, select a payment of the HMBAKERY customer dated 1/20/2023 in the amount of $490.

   Notice that the payment has the Available Balance of $21.

3. On the Application History tab, review the document applied to this payment. An invoice in the amount of $469 has been applied to the payment.
4. On the More menu (under Processing), click Refund.

   The system creates a document with the Refund type and the Payment Amount of $21, which is the available balance of the original payment. The boxes in the Summary area and on the Financial tab have been populated automatically with the settings of the original payment and the payment has been automatically applied to the refund.

5. On the form toolbar, click Remove Hold to give the refund the Balanced status.
6. On the form toolbar, click Release to release the refund.

   The following screenshot illustrates the released refund with the payment applied to it.

   
   
   

7. Click the link in the Reference Nbr. column to open the original payment. On the Payments and Applications form with the payment opened, notice that the payment status has changed to Closed, because the $469 invoice and the $21 refund have been applied to the payment, as shown in the following screenshot.