How to process a Refund or Credit

Credits & Refunds

If you need to process a refund in PPS this will fall into one of three categories depending upon the circumstances of the refund and what accounts transactions you have already recorded for the client.

The three scenarios are:

1. The client has made a payment to you as "funds available on account" and no longer requires further treatment so therefore requires part of (or all of) their initial payment to be refunded.

2. The client has previously been invoiced, and has paid for goods or services and now requires a refund for all or part of those services.

3. The client has been invoiced for goods or services, the invoice was never paid and the goods or services now need to be refunded (credited).

The process you need to follow for each of these three scenarios is quite different, so please check carefully to see which of the three scenarios your situation falls into.

Here are the steps for each scenario.

1. Prepayment on account, all or part of which is unused and now needs to be refunded.

  1. Go to the PPS Accounts screen - you should see in the list of transactions the original payment all (in Green) or part (in Orange) of which is unallocated.
  2. Select to Record a Payment. Enter the date of the refund and the payment method. you may also want to enter additional details to describe the nature of or reason for the refund.
  3. Enter the refund amount as a negative figure. For example if the refund amount is £30, then enter £ -30.00 (minus 30).
  4. Click Save - if the payment allocation screen appears then click Save and Close.
  5. This records the payment onto the client's accounts screen and the current balance should now be correct.
  6. This will leave the original payment to the clinic in Orange and the new refund payment in green. It is ok to leave it like this, but if you would like to complete the process and make everything "Purple" on the accounts screen, then you can do the following.
  7. Select an existing invoice on the accounts screen (perhaps the most recent one) and double click to open the invoice.
  8. Click the Payments button and select "Select an Existing Payment to Allocate to this Invoice".
  9. Select the refund (negative) payment from the list and click Select.
  10. Click the Payments buttons again and select "Select an Existing Payment to Allocate to this Invoice". This time select the original payment and press select.
  11. Now close the invoice. This will have allocated both the refund and the (balance of) the original payment to the invoice. All transactions on the accounts screen will now be in Purple.

2. Previous invoice raised and paid, and a refund is now required.

  1. Go to the PPS Accounts screen - you should see in the list of transactions the original invoice and payment.
  2. Select to Create a Charge. Select the appropriate standard charge or stock item that is being refunded. This will show the correct charge total. Enter the quantity as -1 (minus 1), this will show the total as a negative amount.
  3. Proceed to raise the invoice for the negative charge amount. Once the invoice is raised, record the payment details to reflect the actual refund you have made to the client (date and payment method). If you are entering the payment amount (rather than just marking the invoice as paid when you create it) make sure you enter the payment amount as a negative number.
  4. If you need to print the invoice (credit note) for the client, then this can be done in two ways. You can either print as an invoice which will show negative amounts - this is a perfectly acceptable document in accounting terms, or you can use a "Credit Note" style invoice layout. This replaces the word "Invoice" with "Credit Note" and changes all the negative values on the printout to positive values. Our support desk has a basic Credit Note invoice layout available on request.

3. Previous invoice raised and not paid, and is no longer required - credit to the account is therefore required.

  1. In this scenario because the invoice was never paid in the first place we will not need to record a refund payment. Firstly go to the PPS Accounts screen. You should see the original unpaid invoice in the list.
  2. Select to Create a Charge. Select the appropriate standard charge or stock item that is being credited. This will show the correct charge total. Enter the quantity as -1 (minus 1), this will show the total as a negative amount.
  3. Proceed to raise the invoice for the negative charge amount. Once the invoice is raised, DO NOT record any payment details.
  4. Return to the PPS Accounts screen and you will see the original invoice, and the refund invoice - these will balance each other out. Both invoices will be in "Orange" as unpaid.
  5. If you would like to "complete" these and make them "Purple" then you can do the following.
  6. Select to Record a Payment. Enter the payment method as "Other" and a payment amount of £1.00 (we will change this later). Enter Additional Details to indicate that the payment is being used to simply tie the two invoices together. Press Save and this will take you to the Payment Allocation screen.
  7. Allocate the payment to the NEGATIVE invoice first by placing a Tick against the negative invoice. Then place a tick against the original invoice.
  8. Now change the payment amount from £1.00 to £0.00 (zero). Click Save and Close.
  9. This will now show the original invoice, the new Credit invoice and the zero payment all in Purple.
 

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