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Closing Boat contract with Overpayment Refund to customer by check

CLOSING A BOAT CONTRACT WITH OVERPAYMENT – REFUNDING CUSTOMER BY CHECK

  1. When you have a boat sales contract that shows an overpayment and you are going to refund the customer with a check you need to first have a pay type code set up per #2.
  2. Create a Pay Code that goes to Boat Sales Deposits as this is where the system pushes the overpayment back into when the contract closes.

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  1. Now when you close the contract you will enter this pay type code in the grid and save.  The box will come up to select how you want to do the refund – select AP Check now or later.  This will create the AP Invoice.   The screen shot below shows you an example of how the GL entry is created for the actual closing of the contract.  The system automatically creates another JT to credit Boat Deposits and debits BMT Deposit Clearing Account (System Administration > Configuration > Sales Management >  General Ledger > Accrual Accounts > Clearing Account).  This entry puts the overpayment amount back into Boat Deposits and takes the overpayment out of AR because you are refunding it through AP.
  2. This process also creates a cash receipt entry that will not show in your Post Cash to GL and will not post through Post Subsidiary Journals to GL so you will need to bring it up through General Ledger > Journal Transactions > Enter Journal Transactions and post it directly from this screen.

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Journal transaction example when using Pay type BS on closing and selected AP Check later to cut the refund check back to the customer.   Below listing are the JTs created from the Boat contract closing process.

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The overpayment uses the account number in the Accrual Accounts – clearing account in Boat sales parameters and puts the overpayment amount back into boat deposits as long as the pay type used is not set to update AR.  By using the pay type code BS, the AP invoice is then created against the boat sales deposit account to zero that out.

**If at any point you run into any issues, feel free to email [email protected] for assistance.**