FAQs: Processing Vendor Refunds and Credits
What is the difference between a refund and a credit?
A refund occurs when a prepaid order must be canceled and the money paid is returned to the library. The acquisitions records that represent the library’s order must be marked as unpaid, canceled, and the funds disencumbered.
A credit is similar to a refund, but the vendor keeps the funds, allowing you to use that money to buy something else from the vendor. When the library receives notice of a vendor credit, the orderline should be unpaid and canceled.
How do I refund or credit an order with the Modify Order wizard?
One possible scenario for a vendor refund is that the library prepays a volume of conference proceedings announced in a vendor’s pre-publication list. However, the conference never takes place, and so no conference proceedings are published. The vendor cannot satisfy the library’s prepaid order, and returns the funds, or credits the library.
When the order is displayed, an indication that the order was prepaid displays in the additional orderline information INSTRUCT field.
Payment enclosed
When the library gets the refund or credit because the conference has been canceled and therefore has no published proceedings, the orderline must be changed.
To handle this type of refund
|
1
|
Using the Modify an Order wizard, search the order you want to refund. |
|
2
|
On the Orderlines tab, select the orderline and click the Modify Orderline tool. |
|
3
|
On the Orderline tab, record the refund in the additional line item information fields. Type information about why the item is being canceled in the Comment field. |
|
4
|
Click the Segments tab, and in the Segment tree, select the funding/distribution to be canceled. In the segment editing pane, set the Date Paid to NEVER. |
|
5
|
Click Save Your Changes. The funds are no longer paid, but are still encumbered. |
|
6
|
Change the Funded Quantity to 0 and the Distributed Quantity to 0. |
|
8
|
An empty cancel segment appears. The insertion point is in the Cancel Reason field. Type the cancellation reason VENDOR. In the Date Canceled field, use the to select TODAY. In the Number of Copies field, type the number of items canceled. |
|
9
|
Click OK. The prepaid order is no longer encumbered to the fund. |
How do I credit an order that had been paid by invoice?
One possible scenario for a vendor refund is that the library sees a pre-publication notice and orders an item. The vendor promptly sends an invoice for $59.95, which the library pays. The item, however, does not arrive. When the library claims the item, the vendor admits that publication of the item has been delayed by a year. The library asks for a refund. The vendor sends the refund or a credit notice. The library must remove payment from the orderline item but must do it through the previously paid invoice.
To cancel the order
|
1
|
Use the Display an Order wizard to search an orderline and display the Invoices tab. Lines that are linked to the order to be canceled display. Select the invoice to be unpaid. |
|
2
|
Click the Edit Invoice wizard. The invoice ID and line are identified automatically. |
|
3
|
Select the Pay option and click OK. |
|
4
|
Only the pay date and check number may be modified in the invoice line. Use the to set the Date Paid to NEVER. |
|
5
|
In the Additional Info section select the entry type COMMENT from the list. |
|
6
|
Type a message in the text area which includes all of the relevant information, such as “Paid 6/2/2003, check#1325. Refund [or Credit] on PO-167/2003 line:1 received because item never published. 9/17/2003.” |
|
7
|
Click OK. Now the insertion point can move to the other invoice line fields. |
|
8
|
In the Order ID field, clear the current order information and click OK. The invoice line still exists but is no longer linked to the orderline. |
|
9
|
Now that the orderline is no longer linked to a paid invoice line, a cancel segment can be added, and the funds disencumbered when the refund check arrives. |
|
10
|
Click the Modify an Order wizard and search the orderline. |
|
11
|
On the Segments tab for the orderline, in the Funded Quantity field, type 0. In the Distributed Quantity field, type 0. |
|
12
|
Place the insertion point in the distribution segment and select the After helper. Set the type to CANCEL and click OK. |
|
13
|
An empty cancel segment appears. The insertion point is in the Cancel Reason field. Enter the cancellation reason VENDOR. In the Date Canceled field, use the list to select TODAY. In the Number of Copies field, type the number of items canceled. Click OK. |
How do I keep track of refunds and credits?
Libraries may want some record of having received a refund or credit. You can record a statement in the extended information of the vendor record, indicating the amount and the order/line that was refunded.
CREDIT:9/17/2003,PO-168/2003 line:1,$23.85