Reimbursing customers and paying credit memos

Occasionally, you may need to cancel all or part of an invoice that has already been issued. For example, a customer returned an item, or you made a mistake on the invoice and want to refund the customer the excess amount.

With Continia Banking, you can directly suggest and validate reimbursement payments and credit memos in the payment journal. By default, the payment journal is intended for managing payments to your vendors or employees. However, with the added feature of suggesting customer payments, you can create payment lines to reimburse or pay credit memos to customers.

In the payment journal, you can create customer payment suggestions based on potential credit memos. This is only possible if the credit memo is higher than the owed balance, meaning a negative balance on the customer.

For example, if a specific customer has $5,000 in outstanding sales invoices, and because of returned goods, the same customer is issued a credit memo of $6,000, Continia Banking creates a payment of $1,000 of document type Refund when you suggest customer payments.

To reimburse a customer using the payment journal:

1. Search () for and select Payment Journals.
2. In the page header, in the Batch Name field, select the payment journal you want to suggest payments for, and click Home > Suggest Customer Payments.
3. On the Suggest Customer Payments page, enter information for the relevant fields. For example, set the date filter and select the customer.
4. Click OK to create the suggested customer payment lines. Continia Banking creates the payment lines that comply with the settings of the payment journal suggestion in the payment journal. All payment lines must have the status Valid before they can be exported to the bank. In case of errors on a payment line, you can use the status FactBox in the payment journal to find a more descriptive error message.

Additionally, when Continia Banking processes the payments, it uses a unique payment ID to post them and apply the bank account ledger entries in the bank account reconciliation.