How to Refund Overpaid Outgoing's to Commercial Tenant

Overview

You may have an instance where you have budgeted for outgoing's over a particular period and the amount of actual outgoing's was less, causing an overpayment of the outgoing's by the tenant.  You would therefore be required to refund the overpaid outgoing's.

This document will cover:

• How to do a Refund for Overpaid Outgoing's
• How to Apply Refund to Outgoing's or Tenant Invoice Credit

How to do a Refund for Overpaid Outgoing's

By calculating the budgeted outgoing's less the amount of actual outgoing's for a period, you will have arrived at the amount that is required to be refunded to the tenant. 

1. Check the Owner has sufficient funds to do the disbursement. Go to Files > Owner and enter the Owner alpha index and press ENTER, click on the Enquiry Tab – the current balance will show at the bottom of this screen, you can also check the net balance by clicking on Calculate payout balance
2. Check the account code used for the outgoing's on the tenant card by going Files > Tenant and enter the Tenant alpha index and press ENTER, click on the Rental tab and check the account code in the outgoing's column.

NOTE:  It is important that the correct code is used so this reflects correctly on the owner income and expenditure statement at the end of financial year

3. Go to Transactions > Quick Disbursements and enter the criteria:

• Property – Enter the alpha index of the property and press ENTER
• Amount – Enter the amount of overpaid outgoing's ensuring the correct GST amount generates
• NOTE: If the owner is on Statement Style 13 there will be a tick box to Disburse from withheld funds, tick this box
• Cheque Number – Enter the cheque number as 999999 (Self-presenting cheque number)
• Pay to – Enter the tenant’s name
• Description – Example description, ‘Reimburse tenant overpaid outgoing's 2014/2015’
• Account code – Use the same account code as the outgoing's account code used

4. Click OK-F12

How to Apply Refund to Outgoing's or Tenant Invoice Credit

Once the refund has been created, the most common practice is to apply the refund to either current outgoing's due or to tenant invoice credit. 

1. Go to Transactions > Rent Receipts, enter the tenant alpha index and press ENTER
2. Receipt the amount of refund to either outgoing's or tenant invoice credit:

• To receipt to current outgoing's, on the Rent Tab, enter the amount in the Outgoing's field
• To receipt to Invoice Credit click on Invoice Credit tab enter the amount and description, ‘Reimbursement from owner for overpaid outgoing's

NOTE: amounts in the tenant invoice credit will not reflect a GST amount, however GST can be reflected when allocating to rent, invoice or refund.

  

3. Click OK-12
4. On the Banking Details Screen, select the payment method Direct Deposit
5. Click OK-F12

NOTE: If applying the refund to Tenant Invoice Credit this can be allocated to rent, invoices or refunded to the tenant as required.  For more information on Tenant Invoice Credit, please see document “How to Receipt and Allocate Tenant Invoice Credit”.