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HOMEBUILDER: LOT INSTALLMENTS REFUND

This article covers Step-by-Step Instructions for Processing a Refund Against Lot Installments in HomeBuilder

Usually, there is no requirement to process a Refund Against a Lot Installment for Home Buyers, but occasionally this is a requirement.

Please follow these instruction carefully and completely, the video is just a guide, the instructions follow in this page.

Note: As this function is rare, it has not been constructed to be done by anyone other than a finance administrator who is very familiar with the system.

 

 

  1. Check Installment Statuses Setup:
    • Ensure you have a record under "Installment Statuses" that allows posting against a cash receipt journal and permits negative amounts. If it doesn't exist, create it, suggest calling it REFUND.
  2. Identify the Lot and Customer:
    • Select the lot and customer for the refund. Example: Lot #4, Customer #3 (Latisha).
  3. Determine the Deposit Value you will Refund:
    • The summary of deposits made to date can be seen on the Lot. Example: 505,000.
  4. Create a New Line for Refund in Lot Installments
    • Enter the date to the Document Date.
    • Enter a value to the Document No., this will show on the eventual payment remittance
    • Assign a stage number. Must be between 1 and 50. Suggest using the next number in the series for that Installment List.
    • Input the credit value as a negative number (e.g., -505,000)
    • Aet the status code to "Refund" or whatever you entered to the value you first created in "Installment Statuses"
    • Add a comment if you want for future reference.
  5. Prepare Transaction:
    • Click on "Actions", then add to the cash receipts journal with a date. (The cash receipts journal is really just a General Journal with more restrictions).
  6. Open and Post the Cash Receipt Journal:
    • We will not be posting to the bank, instead we will debit the standard G/L Account for deposits and post the credit against the customer who will be paid later in the payment journal.
      1. Change the Document Type to blank.
      2. Change the Balance Account Type to customer.
      3. Select the Customer No. in the Bal. Account No. field
  7. Post Transaction:
    • Post the transaction and you can also verify that the deposits have returned to zero by looking at Deposits in the Lot card.
  8. Make Payment to Customer:
    • Open the Payment Journal (typically used for vendor payments)
    • Set the document type to "Refund"
    • Change the Account Type to Customer.
    • Select the Customer in the Account No, field
      1. Make sure that you have a good address on the customer card because this will print on the cheque.
    • Click Apply Entries (same as for vendor payments)
    • Change the Payment Type to e.g. Computer Check.
    • Print the check.
  9. Post Payment Transaction:
    • Post the transaction to complete the refund process.