Refunding a Partial Deposit on a Boat Sales Contract

Purpose:  This document will instruct the DockMaster user how to refund a portion of a boat sale contract to the customer, then re-apply the amount not refunded back onto the contract. This method is necessary because a partial refund cannot be processed from the boat sale contract.

Step 1: Enter the actual amount to refund into the contract

From the Menu, click Sales Management > Sales Functions > Contract Maintenance

1. Select the contract for which the partial deposit needs to be processed.
2. Click on the Refunds and Forfeits link at the bottom of the screen.
3. Click onto the deposit to be refunded.
4. Type the amount that you want to refund to the buyer in the Amount to Refund box.  The balance of the deposit will automatically fill in the “Amount to Forfeit” box.
5. Click the green circle icon to update
6. Click the Save icon on the contract.

                                             

Step 2:  Select payment method for returning the funds to buyer

A Refund Choices box will display. This allows various methods of returning the funds to the buyer.

                                                               

• To return the partial deposit to the buyer with a check, the top section will be used.

Click the radio button labelled “Accounts Payable” and make the appropriate selection

• To return the funds to the buyer now, select the radio button labeled Check Now.
• To return the funds to the buyer later, select the radio button labeled Check Later. An accounts payable invoice using the “99999” Vendor will be created. The invoice can then be selected to pay at any time.
• To give the buyer cash back or apply the refund to the customer’s account, the lower section will be used. Click the radio button labelled “Other” and make the appropriate selection.

Step 3:  Create a Pay Type code to apply the ‘Forfeited’ amount back onto the contract

The portion of the deposit that was treated as ‘forfeited’ (not returned to the buyer) will need to be entered back on the contract.

To accomplish this, a Pay Type code will need to be created that reflects the Forfeit general ledger account.

1. Determine the Forfeited Deposits general ledger account where the forfeited monies were recorded.

Go to System Administration > Configuration > Sales Management > click on the General Ledger tab and the Forfeited Deposits account number is the last item on the left side of the screen.

In the example below, the Forfeited Deposits account number is 1614006.

                                                           

2. To create the Pay Type code to be used to apply the amount of the deposit that was not refunded, go to File Maintenance > Pay Type codes. Enter data into the fields as shown below, making sure to use the proper account number from your general ledger.

                                                     

Step 4:  Add the ‘Forfeited’ amount as new deposit onto the contract

1. Select the contract for which the new deposit amount needs to be applied.
2. Click on the Create Deposits link at the bottom of the screen.
3. Type in a reference number, if required.
4. Select the Pay Type code created in Step 3.
5. Enter the amount of the deposit.
6. If desired, enter a description. Ex: ‘ Re-enter the forfeited deposit’
7. Click the green circle icon to update
8. Click the Save icon on the contract.

This process does not affect the bank ledger account because the pay type code directs the deposit money to be debited from the Forfeited Deposit account.  The amount posted to the forfeited deposit account in Step 1 will be cancelled out by the amount re-applied to the contract in Step 4.

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