Refund Checks in Dynamics GP


It’s hardly a new feature, but it’s still surprising how few people know about the Refund Check feature of Microsoft Dynamics GP.

I cover this in the video above, but let’s take an example. Suppose you had a credit on a customer account. It’s fine to leave that credit there to be used by your customer to offset later sales, but what if you’re asked to convert that credit into a payment? Without any automation it’s a solvable problem.  You could do something like this:

  1. Enter a debit memo in the amount of the credit to a suspense account
  2. Apply the new debit memo to the credit amounts
  3. Create a vendor record with similar information as the customer (that includes address information…)
  4. Enter a payables transaction to the new vendor for the same amount and offsetting to the suspense account
  5. Select the payable for check processing

That all works, but there’s a much easier way.

Refund Check Automation

A standard piece of automation for this issue is the Refund Check.  There’s a single setup screen that needs to be filled out under Microsoft Dynamics GP > Tools > Setup > Company>Customer/Vendor Setup.

At the very minimum we set up a suspense account to use as Microsoft Dynamics GP moves the credit on the customer account to a payable and then issues the payment. In my example I enabled the option to automatically create corresponding customer or vendor records as needed.

That’s all for setup!

Now just go over to the Refund Check option in the Sales Transactions menu and you can pick your customer, insert the records to refund, and process payments.

Watch the video for a full walk-through of how to use this nice time-saver.