100.6 Refunding a payment Procedure

Refunding a Payment Procedure

Procedure # 100.6
Rev.: 7.1.20
Effective Date: July 1, 2020

Related Policy:Non-Sponsored Centralized Accounts Receivable Policy
Functional Owner: Director of Financial Information Management
Contact: Supervisor Central AR for Non-Sponsored Billing, 608-890-1328, Email: uwmsnar@bussvc.wisc.edu


Contents

I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Definitions
V. Related References
VI. Revisions


I. Procedure Statement

This procedure for refunding a payment is specifically for transactions that have been processed through centralized Accounts Receivable. Refunds may become necessary as a result of duplicate or over payments made by customers or adjustments and cancelations of invoices that result in overpayments.


II. Who is affected by this Procedure

Any department that sells goods or services for non-sponsored activities should use this procedure.

The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services (DoBS).


III. Procedure

The following steps represent the overall process for requesting a refund:

  • If the refund is a result of an adjustment or cancelation of a bill, clearly indicate on the Cancel_Adjust Form that a refund needs to be processed.
  • Any duplicate payments received by customers will be placed on account for the customer in SFS. DoBS will work collaboratively with departments to determine if the payment needs to be refunded or can be applied to other open invoices.
  • Weekly, DoBS will request refunds to be processed through Accounts payable.

The following journal entry is a sample of what will post when a payment is refunded:

Debit: Selling Department Accounts Receivable (#6200) XXXX

Credit: Central funding string for payments                                      XXXX


IV. Definitions

  • Cancellation – Canceling an invoice should only be used when an error has been made on the bill. An error can include the incorrect customer, contact or location identified on the bill. A duplicate bill for services already invoiced would be a good reason to cancel the bill.
  • Adjustment – Adjusting the bill should be reserved for errors in amounts invoiced. Such as charging the wrong rate for a service or the wrong quantity ordered.
  • Refund – The process of returning money to a customer as a result of overpayment for goods or services.

V. Related Resources


VI. Revisions

Procedure Number

 

Date Approved

 

Revision Dates