What is the proper way to process through Elliott?
A: Due to the refund processing involve 2 modules (AR/zero out of open credit and AP/ cut check payback). You need a clearing account (in the example below, we use 2002000) to absorb the debit from AR and credit from AP so they wash out. Otherwise your GL financial statement could be distorted due to the wrong accounts used. Please see the example below:
Customer #: 374091 AG SUPPLY CENTER INC
Open Credit: $399.95 (document # 132976, Apply-To# 0)
Processing: We’d like to zero out of balance and cut check pay back to customer.
(Accounting à AR à Processing à Sales & Cr/Dr Memo Processing)
� 2. Post Sales & Cr/Dr Memo Transactions
3. After Post Debit memo, it shows on Customer account inquiry and customer account balance became 0.00.
4. Prepare voucher and cut check pay back to customer
a. Create a new vendor for customer # 374091
b. Create new voucher for customer / vendor # 374091
c. Distribution Account should be 2002000 (Customer Refund
Payable – AR/AP)
d. Post AP Transaction as normal procedure.
e. Payment Preparation and Print Check as normal procedure.
f. Post Check as normal procedure.