Customer credit card refund

[Former Member]

Hi everyone,

I issued a credit memo to a customer because they returned some items.

The invoice was originally paid by credit card and they requested to refund their card.

These are the steps I took:

Sales A/R> Credit memo> Enter all information>click the Accounting tab and on the credit card transaction section, select the original charge> Add the CM and the message "credit card refunded" appeared on the bottom of the screen. The refund was also processed thru the gateway. So I thought everything worked.

However, the credit card refund does not show under Banking>Deposit>Credit card tab and when I checked the BP master data ,I noticed that the payment showed up as an Outgoing payment.

How do I fix? I need the payment to go to Incoming instead of Outgoing.

Any help would be appreciated

[Former Member]

I am using SAP Business One and am having the same issue...  Everyone knows the credit card companies net together your sales and credits into one bank transfer. So, shouldn't the software work on the same premise, allowing outgoing and incoming payments regarding customers using the Payment Means Credit Card show in your deposit screen, allowing you to net your incoming and outgoing into one Deposit? You can make the outgoing payment to the customer for the refund and have it post to the Credit Card Clearing account, but it still won't show on the deposit screen.  It certainly will make for a diffucult bank rec if you have to constantly choose a Deposit and a Payment to net to one bank transaction.

Has anyone found a way to handle this issue??

We are not currently using an add-on. We are processing our credit card transactions outside SAP and posting them into SAP through Incoming Payments and Outgoing Payments.

I assume you can't to a negative Incoming Payment...

Kathleen Piano, CPA

Controller

On Rite Company

[Former Member]

yes, you can do a negative incoming payment, against a credit memo.

[former_member583013]

Hello,

When you are refunding money how do you expect it to go to Incoming. When it is money out it is going to go to Outgoing. This is absolutely normal.

Deposit if for Credit Card Receipts not payments.

Suda

[Former Member]

It should be in the Incoming payment as a deduction/credit voucher. This credit voucher will in turn reduce the amount of

payment (credit card deposit) that is posted in the bank .

For example:

Customer credit card ending XXXX $ 500

Customer credit card ending XXXX $600

Customer credit ending XXXXX <$100>

Total 1000

The incoming payment screen only shows $500 and $600 but not the $100 credit. However the bank

posted the amount of $1000.

Hope this example helps.

[former_member583013]

B1newbie

Since you have processed the Credit Card Refund using the gateway, the transaction posted as Debit Customer (AR) and Credit Bank. To me this seems absolutely PERFECT.

You seem to be using an Addon (if I am not wrong). If so, it would be a good point to bring up with the addon company.

Suda

[Former Member]

Yes we use an add-on so I will contact them. Thanks for your help.

[Former Member]

Did you ever find that this was a setting that was determined within SAP? We have developed our own add-on, but we end up running in to the same problem where I really want to have negative values in the credit card deposit for a refund so that the treasury matches and during reconciliation the cash received makes sense. Alternately, if this is possible with the API can you tell me where you found that info.

[Former Member]

Hi Justin,

Yes I was informed that SAP does not process credit card refund as an incoming payment but an outgoing.

I did not find a work around about this issue. Currently, I am reconciling is as a deduct (outgoing payment).

Thanks,