When the billing season ends, there are three options to handle money left in customer Prepay accounts.
- Leave the money in Prepay and use it on future Invoices (no action required).
- Refund the money to the customer.
- Apply the remaining Prepay money to the customer's Regular balance.
A special function helps streamline the process used to handle leftover Prepay money. It can either transfer Prepay to the customer’s Regular account (which will be a credit on the Regular balance) or refund the money to the customer with a Quick Check. In either case, the program generates an Invoice to move the selected prepay dollars to the customer’s Regular account. If the Issue Refund option is used, it generates a Quick Check (before the Invoice is printed). This function is found at A/R / Transfer Customer Prepay.
This option is an easy one-step process to move a customer’s Prepay money either to their Regular account or issue a refund check.
Before either of these options are used, there is a one-time set up that must be completed. The system needs two pieces of information in order to automate these functions: The inventory item to use on the Invoice and the vendor to use on the Quick Check. To select these items, select Setup at the A/R / Transfer Customer Prepay screen. It is recommended to have a special Prepay Refund Vendor so all refunds affect the same vendor. This makes it easier if something needs researched later.
The Use User’s Current Location instead of Customers Location option allows the user’s current location to override the location and product used on the Invoice created by the Transfer Customer Prepay utility.
Transfer Customer Prepay Window
- CustID – The ID for the selected customer is displayed.
- Current Prepay $ Balance – This displays the selected customer’s Prepay balance.
- Date – This will be the date of the Invoice that is generated to accomplish the movement of money.
- Salesperson ID – The Salesperson ID may optionally be selected from the drop-down list. If selected, it appears on the Invoice generated by transferring Prepay.
- Transfer to Regular Acct – This removes the money from the customer’s Prepay account and places a credit on the Regular account for the amount of the transfer.
Note: One Invoice is created with two line items, one negative and one positive that offset each other. The positive line item is marked as Paid, stealing enough paid Booking to cover the dollars in the Total Amt of Refund. The product used for the Invoice is the Prepay Product for the location at the Transfer Customer Prepay Setup window found by selecting Setup. The Invoice will post to the customer’s location.
- Issue Refund – This removes the money from the customer’s Prepay account. Selecting this option enables the Check # and Checking Account fields for the check that will print.
Note: This option transfers the Total Amount of Refund dollars to the Regular account as described above, makes a negative Payment on Account against the Credit Invoice, and follows with a Quick Check using the vendor entered under Setup as the Prepay Vendor for this location. The Quick Check debits the general ledger account specified for the Adjustment payment method to offset the posting to the same account by the payment. The name and address of the customer involved is substituted on the check for the Vendor Name. The Invoice, Payment, and Quick Check post to the customer’s location.
- Description – Optionally enter a description to appear on the Transfer Prepay Invoice.
- Partial Refund – A portion of a Booking may be refunded (or transferred) by overriding the amount in the Refund Amount column.
Regular Account or Issue Refund
- Navigate to Accounting / A/R / Transfer Customer Prepay.
- Highlight the appropriate customer and choose Select.
- On the Transfer Customer Prepay window, select the Date. Choose the Transfer to Regular Acct option to create a Credit Invoice or Issue Refund to issue a check to the customer.
- Optionally select the Salesperson ID and enter a Description.
- Select the option for the Booking line item to be transferred. If necessary, edit the Refund Amount column.
- Optionally choose Print Invoice.
- Select Done. Depending on which option was selected in Step 3, a Credit Invoice is created on the customer’s Regular Account or a check is issued to the customer and printed automatically.
Note: Transfer Customer Prepay Setup must be completed before it is available. Choose Setup on the Transfer Customer Prepay window. A generic Prepay Product and miscellaneous Prepay Vendor must be selected for each location.
Transfer to a Different Customer
Sometimes it is necessary to transfer one customer’s prepay money to another customer. The following steps remove Prepay from one customer and add it to another customer’s Prepay.
It is suggested to have a non-inventoried item in a miscellaneous department called Transfer Prepay and have the sales account point to any miscellaneous income account.
- At A/R / Transfer Customer Prepay, select the customer whose account holds the Prepay balance.
- Select the Booking line item(s) to be used for this transfer. Edit the Refund Amount column if desired to specify the dollar amount to be transferred for each line item.
- With the Total Amt of Refund reflecting the amount to be transferred and the option set to Transfer to Regular Acct, choose Done to save the transaction.
- Go to the Payment on Accounts screen (A/R / Payments / Add) for the customer selected in Step 1. There should be a credit on the Customer’s account for the amount that was transferred. Deselect all items in the grid except the Credit Invoice created by the Transfer Prepay process.
- In the Payment Amount, enter a negative amount equal to the transferred amount, change the Pay Method to Adjustment, and Save the payment.
- If the Customer receiving the Prepay money does not have an existing Booking for the money to be applied, enter a Booking for this Customer, mark the Booking as Paid, and change the Pay Method in the grid to Adjustment before saving the positive payment.
Transfer Customer Down Payment Prepay
Add an Invoice for the customer selecting the booked product twice. This product must be used to close the Sales Contract and update the inventory correctly. One line will be a positive quantity for the units remaining on the paid Booking that needs to be transferred. The second line will be a negative quantity for the same amount. Set the Unit $ column on both line items to be the booked price.
On the positive quantity line, the Level should show as Book. If the Level is not set to Book, select the line under the Level column to select the correct Bookings. Choose the prepay Booking(s) from which the money should be transferred. Select Done.
The positive quantity line item should now be marked as Book with a Status of Paid. The negative quantity line item should remain unpaid. At the bottom of the window, the Subtotal of the Invoice should be $0.00. The Prepay $ Used should be the amount being transferred. The Amount Due should be a credit for the same amount. Save the Invoice. This will relieve the prepay balance and put a credit on the customer’s regular account.