Just had to refund a client via GoCardless but I was expecting the invoice to be closed but it crept into the invoice renewal and inevitably the client was not expecting that nor I.
Is there anyway QF can deal with this…
Thanks
If you refund a payment from the GoCardless side it won’t modify the original invoice in any way.
I’m not sure what you are referring to by “crept into the invoice renewal”, can you elaborate on this please?
Following the refund from GoCardless, you would normally go to the original invoice and issue a credit note, when saving select the option to refund from the GoCardless merchant account.
I’m concerned about applying this to the GC merchant account. GC refunds (credits?) the amount due in a subsequent payment and therefore balances the account at that point. Is this not a correct process?
It does appear that when you have the ‘Credit Control Settings’ invoice reminder set (my fault I should have said reminder not renewal) the reminder is still sent to the client regardless of any GC direct debit payment being initiated. A GC DD would normally take 7-12 days to be paid. QF would ideally stop the clock when a GC DD is in place?
There will be some manual intervention required when reconciling the GoCardless merchant account, it’s likely that you may need to adjust this occasionally. However if you have the original payment on the GoCardless account you should also have the refund.
Any amounts coming into your current account from GoCardless should be tagged as a transfer from the GC merchant account. The refund will be accounted for here.
I would definitely switch off automatic reminders if you’re collecting the majority of your income through GoCardless. You can then at least manually vet them.
The problem is even though the payment is initiated, it isn’t in strict accounting terms “paid-up”, there are cases where the payment can bounce, much like a cheque.
Obviously you don’t want to fire reminders when a payment is in progress and GoCardless is a special case here that we don’t make an exception for at the moment.
Thanks for very prompt replies…
Can I summarise. on the GC refunds:
a. Manually credit the client from GC end.
b. Manually issue credit note on QF
c. Reconcile the GC merchant account on occasions so that the GC refund is applied correctly
Thanks
Yes that is the general approach to use.
Also to just elaborate on point c let me give you an isolated example of what I mean by reconciling.
- You create an invoice for £100 on QuickFile.
- A payment request is initiated with GoCardless for £100
- 6 days later you receive £99 in your bank account, the original invoice is marked as paid (with £100 coming into the GC merchant account).
- The balance on the GC merchant account will be £100 in, less £99 transfer to the current account, leaving a balance of £1.00.
The remaining £1 is a fee to GC and needs to be accounted for, in reality you will have many of these small fees adding up that if not entered will slowly increase the balance on your GC merchant account.
Typically what you would do here is enter a money out entry for £1 and tag this as a payment to a supplier called GoCardless (use the category “bank charges”). Doing this for every invoice would be tedious so it’s better to run a report on GC for all charges for a given month and post the total for the last day of that month and tag as a lump sum payment to the GC supplier.
With regards to refunds, if the original payment was made on the invoice and appears in the GC merchant account, you should directly refund the invoice back into that same account. At some point you would have had a transfer for those monies to your current account and you will eventually receive a lesser payment accounting for the refund. If you have all these 4 entries then it will balance nicely.
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