Sage 100

For the accountants out there. Customer called yesterday and said they have a fully paid invoice in AR for which they need to issue a partial refund to the customer. Customer decided to use 50% of the services they provide. They use GL/AP/AR only. .Took me a while to figure it out and I was stumped at the number of steps and difficulty of doing this in Sage100 for a non-accountant. Am I missing something? Is there a quick and easy way? I looked at the steps in the help files as well as AP/AR clearing functions. They said QuickBooks has a button you click and it does everything for you. Wow, I wonder who thought of that ;)

------------------------------
Kenny Daniel
Technoclarity, Inc.
------------------------------

If the end user's, and the customer don't care about getting generating a credit memo, you could set the customer up as a vendor and enter an invoice using using the sales revenue GL account.  Then cut a check to pay the invoice.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
------------------------------

Thanks Doug but I don’t understand. When you do a credit memo you reverse the sale. If you do it again in AP you are doubling up. And what happens to the credit memo? How does it get zeroed out?

---------------------------------
Kenny Daniel
Technoclarity, Inc.
---------------------------------



Original Message:
Sent: 04-23-2020
From: Doug Higgs
Subject: RE: Customer Refund

If the end user's, and the customer don't care about getting generating a credit memo, you could set the customer up as a vendor and enter an invoice using using the sales revenue GL account.  Then cut a check to pay the invoice.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
------------------------------

I'm saying forget the AR credit memo.  Just enter an AP invoice and cut the check to the customer (now a vendor).  Use the sales account originally used in the AR Invoice.  The entries will look like this:

Original GL entry when AR Invoice was updated (if the invoice is for $100):

Accounts receivable    debit   100
Sales revenue credit 100

Original GL entry when cash receipt was updated:

Cash debit 100
Accounts receivable credit 100

Proposed new entry - Enter an account payable invoice  (the customer is a new vendor):

Sales revenue  debit 100
Accounts payable  credit 100

Proposed new entry -   Pay the AP invoice:

Accounts payable debit 100
Cash  credit 100





------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
------------------------------

Original Message:
Sent: 04-23-2020 11:15
From: Kenny Daniel
Subject: Customer Refund

Thanks Doug but I don't understand. When you do a credit memo you reverse the sale. If you do it again in AP you are doubling up. And what happens to the credit memo? How does it get zeroed out?

---------------------------------
Kenny Daniel
Technoclarity, Inc.
---------------------------------




Original Message:
Sent: 04-23-2020
From: Doug Higgs
Subject: RE: Customer Refund

If the end user's, and the customer don't care about getting generating a credit memo, you could set the customer up as a vendor and enter an invoice using using the sales revenue GL account.  Then cut a check to pay the invoice.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
------------------------------

@Doug Higgs, I get what you are saying but that doesn’t reflect anything in AR, for historical and audit trail purposes. @Jeff Schwenk after an hour or so I figured out what is needed to be done. My whole point is that for a “sophisticated” system like Sage100 where the AP, AR and GL are supposedly integrated, it shouldn’t be this hard and the end user should not need to call their consultant to ask how to issue a refund, only to find out they don’t know either 😀

---------------------------------
Kenny Daniel
Technoclarity, Inc.
---------------------------------



Original Message:
Sent: 04-23-2020
From: Doug Higgs
Subject: RE: Customer Refund

I'm saying forget the AR credit memo.  Just enter an AP invoice and cut the check to the customer (now a vendor).  Use the sales account originally used in the AR Invoice.  The entries will look like this:

Original GL entry when AR Invoice was updated (if the invoice is for $100):

Accounts receivable    debit   100
Sales revenue credit 100

Original GL entry when cash receipt was updated:

Cash debit 100
Accounts receivable credit 100

Proposed new entry - Enter an account payable invoice  (the customer is a new vendor):

Sales revenue  debit 100
Accounts payable  credit 100

Proposed new entry -   Pay the AP invoice:

Accounts payable debit 100
Cash  credit 100





------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
------------------------------


Original Message:
Sent: 04-23-2020 11:15
From: Kenny Daniel
Subject: Customer Refund

Thanks Doug but I don't understand. When you do a credit memo you reverse the sale. If you do it again in AP you are doubling up. And what happens to the credit memo? How does it get zeroed out?

---------------------------------
Kenny Daniel
Technoclarity, Inc.
---------------------------------

@Kenny Daniel  You are absolutely correct.  It doesn't provide any historical data or audit trail.  Simply offering an alternative to doing it the "Sage 100 way".  ​

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
------------------------------

Original Message:
Sent: 04-23-2020 12:09
From: Kenny Daniel
Subject: Customer Refund

@Doug Higgs, I get what you are saying but that doesn't reflect anything in AR, for historical and audit trail purposes. @Jeff Schwenk after an hour or so I figured out what is needed to be done. My whole point is that for a "sophisticated" system like Sage100 where the AP, AR and GL are supposedly integrated, it shouldn't be this hard and the end user should not need to call their consultant to ask how to issue a refund, only to find out they don't know either 😀

---------------------------------
Kenny Daniel
Technoclarity, Inc.
---------------------------------




Original Message:
Sent: 04-23-2020
From: Doug Higgs
Subject: RE: Customer Refund

I'm saying forget the AR credit memo.  Just enter an AP invoice and cut the check to the customer (now a vendor).  Use the sales account originally used in the AR Invoice.  The entries will look like this:

Original GL entry when AR Invoice was updated (if the invoice is for $100):

Accounts receivable    debit   100
Sales revenue credit 100

Original GL entry when cash receipt was updated:

Cash debit 100
Accounts receivable credit 100

Proposed new entry - Enter an account payable invoice  (the customer is a new vendor):

Sales revenue  debit 100
Accounts payable  credit 100

Proposed new entry -   Pay the AP invoice:

Accounts payable debit 100
Cash  credit 100





------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
------------------------------


Original Message:
Sent: 04-23-2020 11:15
From: Kenny Daniel
Subject: Customer Refund

Thanks Doug but I don't understand. When you do a credit memo you reverse the sale. If you do it again in AP you are doubling up. And what happens to the credit memo? How does it get zeroed out?

---------------------------------
Kenny Daniel
Technoclarity, Inc.


Original Message:
Sent: 04-23-2020
From: Doug Higgs
Subject: RE: Customer Refund

If the end user's, and the customer don't care about getting generating a credit memo, you could set the customer up as a vendor and enter an invoice using using the sales revenue GL account.  Then cut a check to pay the invoice.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary

------------------------------
Kevin Moyes
Technical Systems Analyst
Munjal White Consulting Co.
Toronto ON
------------------------------

Original Message:
Sent: 04-23-2020 12:09
From: Kenny Daniel
Subject: Customer Refund

@Doug Higgs, I get what you are saying but that doesn't reflect anything in AR, for historical and audit trail purposes. @Jeff Schwenk after an hour or so I figured out what is needed to be done. My whole point is that for a "sophisticated" system like Sage100 where the AP, AR and GL are supposedly integrated, it shouldn't be this hard and the end user should not need to call their consultant to ask how to issue a refund, only to find out they don't know either 😀

---------------------------------
Kenny Daniel
Technoclarity, Inc.
---------------------------------




Original Message:
Sent: 04-23-2020
From: Doug Higgs
Subject: RE: Customer Refund

I'm saying forget the AR credit memo.  Just enter an AP invoice and cut the check to the customer (now a vendor).  Use the sales account originally used in the AR Invoice.  The entries will look like this:

Original GL entry when AR Invoice was updated (if the invoice is for $100):

Accounts receivable    debit   100
Sales revenue credit 100

Original GL entry when cash receipt was updated:

Cash debit 100
Accounts receivable credit 100

Proposed new entry - Enter an account payable invoice  (the customer is a new vendor):

Sales revenue  debit 100
Accounts payable  credit 100

Proposed new entry -   Pay the AP invoice:

Accounts payable debit 100
Cash  credit 100





------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
------------------------------


Original Message:
Sent: 04-23-2020 11:15
From: Kenny Daniel
Subject: Customer Refund

Thanks Doug but I don't understand. When you do a credit memo you reverse the sale. If you do it again in AP you are doubling up. And what happens to the credit memo? How does it get zeroed out?

---------------------------------
Kenny Daniel
Technoclarity, Inc.


Original Message:
Sent: 04-23-2020
From: Doug Higgs
Subject: RE: Customer Refund

If the end user's, and the customer don't care about getting generating a credit memo, you could set the customer up as a vendor and enter an invoice using using the sales revenue GL account.  Then cut a check to pay the invoice.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary

Yes, a bit tedious trying to give money back to the customer via AR CM, move CM out of AR via cash receipts to clearing account, then issuing check via NOF vendor against the clearing account..

Or you could skip the cash receipts step by issuing the CM against the revenue account and a second line using the clearing account with a negative amount,  Total CM is zero.  Issue check to NOF vendor and the clearing account.

No accounting theory involved with QB.  But since it is so easy to screw up, CPA's love that aspect of it.More money for their cleanup crew.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------

Original Message:
Sent: 04-23-2020 10:55
From: Doug Higgs
Subject: Customer Refund

If the end user's, and the customer don't care about getting generating a credit memo, you could set the customer up as a vendor and enter an invoice using using the sales revenue GL account.  Then cut a check to pay the invoice.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
------------------------------

Aaaah..... The infamous "Help" files.....  Most of the time when I consult the "help" files to figure out a process, I come away shaking my head and wondering what I would do if I ever encountered anyone whose claim to fame was being the author of these "help" files.....   @Kenny Daniel - If you locate an Idea site enhancement request to streamline this process, post the link so we can all vote on it.
​

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------

Original Message:
Sent: 04-23-2020 11:24
From: Jeff Schwenk
Subject: Customer Refund

Yes, a bit tedious trying to give money back to the customer via AR CM, move CM out of AR via cash receipts to clearing account, then issuing check via NOF vendor against the clearing account..

Or you could skip the cash receipts step by issuing the CM against the revenue account and a second line using the clearing account with a negative amount,  Total CM is zero.  Issue check to NOF vendor and the clearing account.

No accounting theory involved with QB.  But since it is so easy to screw up, CPA's love that aspect of it.More money for their cleanup crew.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------


Original Message:
Sent: 04-23-2020 10:55
From: Doug Higgs
Subject: Customer Refund

If the end user's, and the customer don't care about getting generating a credit memo, you could set the customer up as a vendor and enter an invoice using using the sales revenue GL account.  Then cut a check to pay the invoice.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary

@Kevin Moyes Thanks, that was the first place I looked but i could not get the accounting part to come out right when I tried their instructions.  I think the help files are meant for an Overpayment on an Invoice, You bill 100, customer pays 150, you need to return the 50. It's a little different when the invoice is paid in full and you need to return a part of it. I think the simple fact that after all these posts we are still not sure on how to do a refund (correctly) is a clear indication that Sage needs to do something about it.   ​

------------------------------
Kenny Daniel
Technoclarity, Inc.
------------------------------

Original Message:
Sent: 04-23-2020 15:05
From: Jeff Schwenk
Subject: Customer Refund

Aaaah..... The infamous "Help" files.....  Most of the time when I consult the "help" files to figure out a process, I come away shaking my head and wondering what I would do if I ever encountered anyone whose claim to fame was being the author of these "help" files.....   @Kenny Daniel - If you locate an Idea site enhancement request to streamline this process, post the link so we can all vote on it.
​

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------


Original Message:
Sent: 04-23-2020 11:24
From: Jeff Schwenk
Subject: Customer Refund

Yes, a bit tedious trying to give money back to the customer via AR CM, move CM out of AR via cash receipts to clearing account, then issuing check via NOF vendor against the clearing account..

Or you could skip the cash receipts step by issuing the CM against the revenue account and a second line using the clearing account with a negative amount,  Total CM is zero.  Issue check to NOF vendor and the clearing account.

No accounting theory involved with QB.  But since it is so easy to screw up, CPA's love that aspect of it.More money for their cleanup crew.

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444


Original Message:
Sent: 04-23-2020 10:55
From: Doug Higgs
Subject: Customer Refund

If the end user's, and the customer don't care about getting generating a credit memo, you could set the customer up as a vendor and enter an invoice using using the sales revenue GL account.  Then cut a check to pay the invoice.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary