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.
- 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.
- Identify the Lot and Customer:
- Select the lot and customer for the refund. Example: Lot #4, Customer #3 (Latisha).
- Determine the Deposit Value you will Refund:
- The summary of deposits made to date can be seen on the Lot. Example: 505,000.
- 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.
- 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).
- 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.
- Change the Document Type to blank.
- Change the Balance Account Type to customer.
- Select the Customer No. in the Bal. Account No. field
- 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.
- 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.
- 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
- 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.
- Post Payment Transaction:
- Post the transaction to complete the refund process.