Refunds will come in to R365 as both a Sales Account and Payment Type Account from your POS. While R365 cannot provide official accounting advice on which GL Account(s) you should map refunds to, we recommend the following:
- The Sales Account should be hitting Undeposited Funds or a Bank Account (to show a decrease in funds from your bank account)
- When assigning a Payment Type Account, many Users create a new GL Account called 'Refund' for it. Ensure this GL Account is not mapped to a 'Sales' GL Type, since it will decrease your Sales for that day (which is not what a refund should do)
- Note: If you do create a new 'Refund' GL Account, it would likely be an 'Operating Expense' GL Type
- Note: If you do create a new 'Refund' GL Account, it would likely be an 'Operating Expense' GL Type
- After updating the mapping, you will need to unapprove the DSS (if a refund was listed on it) and recreate the DSS Journal Entry to update it to the new mapping
All future refunds will then follow this mapping upon import.
Refunds Recorded as a Negative Credit
Some POS systems will record the Refund Sales Account as a negative value on the credit side of the DSS Journal Entry.
When the refund is recorded as a negative value on the credit side of the DSS Journal Entry, the mapping will need to be reversed as follows:
- The Payment Type Account should be hitting Undeposited Funds or a Bank Account (to show a decrease in funds from your bank account)
- When assigning the Sales Account, many Users create a new GL Account called 'Refund' for it. Ensure this GL Account is mapped to a 'Sales' GL Type so it will decrease your Sales for that day.
- Note: You can also map this to an existing Sales Account; i.e. - 'Food Sales'
- Note: You can also map this to an existing Sales Account; i.e. - 'Food Sales'
- After updating the mapping, you will need to unapprove the DSS (if a refund was listed on it) and recreate the DSS Journal Entry to update it to the new mapping
All future refunds will then follow this mapping upon import.