Accounting transactions created when processing refunds

The accounting transactions created in the iMIS Trans table when issuing refunds include the following:

• A credit is made to the Refund Clearing account that has been set up in the AR/Cash Default Accounts table.
• A debit is made to the Accounts Receivable account that has been set up in the AR/Cash Default Accounts table.

These accounting transactions are imported into your third-party GL package at GL interface time.

If you use an AP interface, one export file contains the transactions that are to be imported into your third-party AP package. This file, usually named invoice.txt, may contain one debit transaction to the Refund Clearing account per refund, or it may contain two transactions per refund including a debit transaction to the refund clearing account and a credit transaction to AP. In the scenario where the export file only contains the debit transaction to the refund clearing account, the third-party AP interface automatically creates the credit transaction to AP when the file is imported.

The final refund-processing step is generating refund checks through your third-party AP package, which will create a debit to the AP account and a credit to the cash account. When writing the refund check in your AP package, two transactions are created, including a credit to cash and a debit to AP.

If your system is not licensed for the iMIS AP module, you can enter the data manually by using the iMIS Refund report as a basis. This report is generated when refunds are processed in iMIS. You should use the refund clearing account as the AP offset or distribution account, bringing the net effect of the clearing account to zero.