Accounting for Refund Processing

To handle refunds, you will want to make sure your accounting system and DASH reconcile, meaning every refund check written should have been entered into DASH. Operational procedures may vary on how you handle refunds, but a simple reconciliation tool we recommend is setting up a General Ledger Account in your accounting system for Refund Checks. I recommend you do so in your cash account area. Here is how it works:

  1. When you write a check, record it to this account:
DR – DASH Refund Account     Carol King $100

          CR – Checking Account         Carol King $100

            Note: make sure you note the check number somewhere in the entry detail for ease of month end reconciliation.
When you record the refund in DASH, enter in your company check number in the check field when you check-out. The refund will show up on your Sales Report with all other payments, and in fact will be sub-totaled with all other checks deposited for that period. The entry you make to record this in your accounting system is:

DR – DASH Customer AR $100
CR – DASH Refund Account $100

The monthly revenue entry you make will then record the refund into the right sales categories (this entry is discussed below).

   DASH Customer AR  DASH Refund Acct.  Revenue Detail
 Daily Deposit entry  
Debit $100
Credit ($100)
GL Report Entry
  Debit $100 Credit ($100)
 Balance  Debit $100  $0  Credit ($100)

Reconciliation: In your accounting system, make sure your DASH Refund Account has a zero balance at all times. That means every refund check written has been entered into DASH. It also means, all refunds entered into DASH have been recorded in your accounting system (usually meaning you have not forgotten to enter a check).

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