Cancelling an order to which a prepayment was applied

Question

I generated a Sales Order. Product was not received. I received a deposit on that order from the client and I recorded that deposit as a prepayment to her account. Client now wants to cancel the order and receive a return check. Since product has not been received, I haven't converted her Sales Order to an invoice. 
 What should I do to balance her account while also issuing her a return check.

termerins · Answer

You should go into Tasks and Payments and issue a refund check back to the Customer ID, posting the refund to the G/L Account that you used for the Prepayment (typically Accounts Receivable). You should then go into Tasks and Receive Money and APPLY the debit (Customer Refund) to the credit (Customer Prepayment), which will net out to zero. Lastly, you should go into Tasks and Sales Orders and open the Sales Order, place a check mark in the Close SO box, and save the Sales Order to close it. 
 Tammi M. Ermerins ( tammi@pcosupport.com ) 
 Certified Sage 50/Peachtree Accounting & Crystal Reports Consultant & Trainer 
 800-780-0700 / 954-961-0600, Visit Us on the Web at https://pcosupport.com

Sage 50 US

Cancelling an order to which a prepayment was applied

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