Overview:

To process a customer refund in your financial system, go to the Customer Refund section and enter the necessary refund details. This refund will remain pending until a new payment for the original invoice is received. Optionally, to match the refund with the original invoice date and ensure it appears correctly in your sales reports, you can post a new invoice dated the same as the original invoice and a sales credit dated the refund date, allocating it to the customer refund. In the customer account, issue a sales credit matching the original invoice details such as date, VAT rate, net amount, and tax amount. Then, allocate this sales credit to the customer refund in the Allocate Pending Credits section. Afterwards, raise a new invoice in the customer account with the same details as the original invoice that was paid off in error. This process effectively reissues the invoice. Note that this approach will cause the original invoice to appear as paid off in your financial system, but it will still be outstanding in the customer’s accounting system, although the overall customer balance remains correct. This discrepancy will result in different invoice numbers between the two systems.

Issue: Customer Payment Against Sales Invoice Has Bounced or Paid in Error

1. Go to Bank>Customer Refund and enter the custom refund details.
2. (The customer refund remains outstanding until you receive a new payment for the invoice.)
   • Optional – To age the refund to the date of the original invoice (and see the new invoice in your open Sales Invoice reports), post a Customer Sales Invoice on the date of the original invoice and a Customer Sales credit on the refund date, allocating it to the Customer refund.
3. In the Customer account, raise a Sales Credit for the same Invoice Date, VAT Rate, Net Amount and Tax Amount as the invoice that was paid-off in error.
4. Go to Bank> Allocate Pending Credits and Payment on Accounts to Invoices and allocate the Sales Credit to the Customer Refund.
5. In the Customer account, raise a new Sales Invoice for the same Invoice Date, VAT Rate, Net Amount and Tax Amount as the invoice that was paid-off in error. The effect of this action will be “re-issuing” the invoice.

Note: The limitation that this procedure entails is the following: whereas the invoice paid in error will appear to be paid-off per Zumzum Financials, the same invoice will be outstanding per the customer’s accounting system. However, the total customer balance will be correct. In other words, the user will notice that the outstanding invoice will have a different invoice number per Zumzum Financials, and per the customer’s accounting system.

Learn more about Bank Corrections in Zumzum Financials.