How to Refund a Customer Prepayment that has not been Applied to an Invoice in Sage 100


How to Refund a Customer Prepayment that has not been Applied to an Invoice


To reverse the Prepayment in Accounts Receivable:

  1. Expand Accounts Receivable, Main, Cash Receipts Entry.
  2. Click the Next Deposit Number icon and enter a Description if required.
  3. Verify the Bank Code and Deposit Dates are correct.
  4. In the Cash Deposit Amount field, enter zero and click Accept.
  5. In the Customer No. field, enter the Customer Number receiving the refund.
  6. In the Check No. field, enter Reversal.
  7. On the Lines tab, click the Select Invoices icon and select the original prepayment.
  8. On the second line, change the Line Type in the secondary grid to GL Account and select a G/L account to credit; the same account will be used to debit when processing the refund check. The Amt Posted column will automatically populate with an offsetting amount of the prepayment.
  9. Click Accept and Update.

To process the Refund Check in Accounts Payable:

  1. Expand Accounts Payable, Main, Manual Check and Payment Entry.
  2. Use the Lookup to select the appropriate Bank Code.
  3. If the check was written manually, enter the Check Number; otherwise, click the Printer icon and the Check Number will be populated as *PRNT*.
  4. Enter the Check Date and the Check Amount.
  5. In the Vendor No. field, enter NOF (the default Not-on-File Vendor Number).
  6. Tab to the next field, delete Not on File Vendor and enter the Customer’s Name.
  7. On the Lines tab, click the Create G/L Distribution icon and select the same G/L account credited in Step 8 above and enter the check amount in the Amount column and click Accept twice to get to the Manual Check and Printing screen. Deselect Print Remit To Information if selected.
  8. Follow the prompts to print the manual check (if required).

Print and Update the Manual Check and Payment Register.


If necessary, seek the assistance of Acute Data Systems to help provide assistance with this process.