Table of Contents
Overview
This article covers different scenarios and what steps need to be taken to refund your customer.
Aspire Payment Methods
Aspire has multiple Payment Methods available to create Payments. The four default payment methods, Cash, Check, Credit Card, and EFT, are available for all companies using Aspire. In this article, default payment methods will be referred to as Aspire Payment Methods.
Electronic Payments: Fiserv
The last option of Add New Payment Method, is only available for companies who integrate with our electronic payment partner, Fiserv. This integration will give two options to add information for a Credit Card and ACH to process payments to Aspire. We’ll refer to these as Fiserv.
🧠 If you do not have the Fiserv integration, you will use the Aspire Payment Methods - Refunding Payments section.
Examples of Aspire Payment Method and Fiserv
Here are high-level steps for payment processing for Aspire Payment Methods and Fiserv!
Example - Aspire Payment Method: Credit Card Payment
Outside of Aspire | Within Aspire |
1. Customer pays invoice with Credit Card ⬇️ 2. Credit Card Processing System 'authorizes' the credit card or bank account to check for funds ⬇️ 3. Funds are deposited into the bank account | 1. Manually create a Payment in Aspire with the default Credit Card payment method ⬇️ 2. Add Payment to a Deposit ⬇️ 3. Send Deposit to Accounting System |
Example - For Fiserv: Credit Card
Outside of Aspire | Within Aspire |
Funds are deposited, anywhere between steps 2-5, into the bank account. | 1. Customer pays invoice with Credit Card through Customer Portal or Admin processes transaction saved payment ⬇️ 2. Fiserv 'authorizes' the credit card or bank account to check for funds ⬇️ 3. System automatically Creates a Payment in Aspire with the Fiserv integration ⬇️ 4. Add Payment to a Deposit ⬇️ 5. Send Deposit to Accounting System |
💡 Depending on which step in the above process is used and you realize a refund needs to be issued, there are different steps to follow.
Aspire Payment Methods - Refunding Payments
🧠 Aspire Payment Methods are defined as payments that were made with the default payment types of Cash, Check, Credit Card, and EFT. The following scenarios may apply to you.
Scenario 1: Customer Payment was Applied to the Wrong Invoice
If you have received a payment and applied it to the wrong invoice or customer, how do you fix it?
Solution
If the month is open, there are two options:
Deposited
If the payment has already been deposited, then you need to find the deposit that the payment is in and reset to new then delete the deposit. Continue to the not deposited step. 👇
Not Deposited
If the payment has not been deposited, go into the payment and you can uncheck the invoice allocation and/or adjust the allocation amount.
🧠 Remember to put the payment into a deposit and send the deposit to the accounting system. You should also remember to remove the original deposit in your accounting system to avoid duplicates.
If the Month is Closed
Create a Misc. Invoice (Clean up AR) for the client who received the monies incorrectly.
Create a Credit Memo: Credit as Expense (Clean up AR) for the client who needs the monies applied to the invoice/open AR balance.
Below is an example of the GL entries from beginning to end. You will not create this entry, this is just an example of the activity that will occur. The debits are displayed as a positive number, and the credits are displayed as a negative number.
Scenario 2: Returned / Bounced / Declined with Aspire Payment Method or Fiserv
If your customer has made a payment that is later declined or returned/bounced by the bank.
Solution:
Create an entry in your accounting system to record the declined or returned/bounced payment.
Debit Returned or Bounced Checks & Credit Cash
This might require you to setup an account called “Refund Customer/ Returned or Bounced Checks” in your Accounting System. This would be an expense account.
Create a New Miscellaneous Invoice in Aspire for the dollar amount of the returned/bounced check/declined payment. From the Item drop down choose – “Bounced Check”. This entry will add the customer balance back to the Accounts Receivable and allow you to process a new payment as needed.
When you enter the EOM Revenue Tab Journal Entry from Aspire to the Accounting System, it will show the Misc. Invoice as a credit. You would code it to Refund Customer / Bounced check GL account in your Accounting System.
Process a New Payment as needed.
Example – Below is an example of the GL entries from beginning to end. This is an illustration of the entries that will be created with the process. You will not create this entry, this is just an example of the activity that will occur. The debits are a positive number, and the credits are a negative number.
Scenario 3: Your Customer Pays But Requests a Refund
In this scenario, your customer has made the payment, and it has gone into your bank account. However, the customer asks for a refund of the payment.
Solution:
You need to send the payment to accounting even if the payment is available to remove from the deposit.
If you haven't already, continue to create the payment in the Aspire system and send it to Accounting.
Add the information about needing the transaction refunded in the Payment Notes section on the payment.
In your company’s accounting system, create an account called Refund Customer/ Bounced Check. Then, from your accounting system, issue a check for the refund coded to the new Refund Customer/Bounced Check account. There are two options depending on your situation.
First Option
If the customer has been Invoiced and payment was applied in Aspire, you don’t need to record the refund in Aspire.
Example – Below is an Illustration of the GL entries from beginning to end. You will not create this entry, this is just an overall picture of the activity that will occur. The debits are a positive number, and the credits are a negative number.
Second Option
If your client made a payment, and it is not attached to an invoice, then you would create a Misc. Invoice to 'refund the customer' the balance in Aspire or reduce the negative AR Balance.
Is your client going to pay the invoice?
If not, issue a CM to the division or expense to remove the balance due if an invoice has been created.
If no invoice has been created, the Misc. Invoice will complete this transaction.
Example – Below is an Illustration of the GL entries from beginning to end. This is an illustration of the entries that will be created with the process. You will not create this entry, this is to give you an overall picture of the activity that will occur. The debits are a positive number, and the credits are a negative number.
Scenario 4: If Your Customer Has A Credit Balance But Requests a Refund
In this scenario, your customer would like a refund of a credit balance on their account.
Solution:
Create a Miscellaneous Invoice for the appropriate property and use the Invoice Line Item drop down of Offset A/R Credit (Customer Refund). This will be recorded in the Accounting System at the EOM.
Apply the Credit Balance to the Miscellaneous Invoice you just made to create a zero dollar balance.
In your company’s accounting system, create an account called, Refund Customer/Bounced Check. Then cut a check for the Refund within the Accounting system to send to the customer.
The Misc. Invoice will post to a clearing account in your accounting system, for example, “Refund Customer/Bounced Check”. By posting the check to the same General Ledger account, it will be zero as shown below.
Example – Below is an Illustration of the GL entries from beginning to end. This is an illustration of the entries that will be created with the process. You will not create this entry, we’re trying to give you an overall picture of the activity that will occur. The debits are a positive number, and the credits are a negative number.
Fiserv - Refunding Payments
The two electronic payment methods used by Fiserv are ACH or Credit Card and will appear like below.
Depending on the time frame of the payment, and where you are at in the payment process, you will have the option to either Refund or Void payments with the Fiserv integration.
📌 Note: Fiserv does not allow for partial void or partial refund of payments.
⚠️ Fiserv does not notify Aspire of failed or uncollected ACH payments. You should look at the status of your ACH payments in Fiserv, or your bank to see if you need to record this entry.
Scenario 5: If Your Customer Pays and Then Requests a Refund
In this scenario, your customer has made an ACH or Credit Card Payment through Fiserv. The payment was created and received but needs to be refunded.
Solution: You will need to go directly into your company’s Fiserv account and refund the payment.
Use the Transaction number to find the Electronic Payment in Fiserv or use the Reference Number from Aspire.
To find the Reference Number in Aspire, go to Invoicing → Payments → Click the Payment that needs refunded → Reference # will appear on the right
There is an option that will allow you to refund the credit card or ACH payment directly from Fiserv. Refund the client for the amount needed.
Record the electronic refund in the Accounting System by Debit Refunds and Credit Cash.
Example – Below is an Illustration of the GL entries from beginning to end. This is an illustration of the entries that will be created with the process. You will not create this entry, we’re trying to give you an overall picture of the activity that will occur. The debits are a positive number, and the credits are a negative number.
Fiserv - Voiding Payments
If you have the option to void, this means that the customer’s payment has not been processed by Fiserv. If you have the option to void a payment, continue as needed.
⚠️ If you need to refund an ACH or Credit Card payment, when integrated with Fiserv, the option to Void the payment will only be available in Aspire for a short time period.
If the payment was created prior to 8:30 PM Central Standard Time (CST) for that day, the option to Void the Payment will only be available until that time.
If the payment was created after 8:30 PM CST, it will be available to void until the following day at 8:30 PM CST.
🧠 If the void option is no longer available from the dropdown, that means your payment will be processed. If this happens, you will need to go to the If Your Customer Pays But Requests a Refund, under the Fiserv section.
Scenario 6: Voiding a Payment Not Yet Sent to Accounting
If an ACH or Credit Card Electronic Payment was created and needs to be voided soon after, you have a small window to void a payment in Aspire.
Solution:
In this scenario, you will need to go into Aspire and void your transaction.
Use the Reference Number to find the Electronic Payment.
To find the Reference Number in Aspire, go to Invoicing → Payments → Click needed payment → Reference # will appear on the right
Void the payment in Aspire. It will delete the Aspire payment record so it can’t be sent over as a deposit. No entries will be processed since the transaction was voided from Aspire with Fiserv but the electronic payment transaction will remain for record purposes only.
🧠 If the void option is no longer available from the dropdown, that means your payment will be processed. If this happens, you will need to go to the If Your Customer Pays But Requests a Refund, under the Fiserv section.
Voiding the transaction will open the invoice so there is a balance due.
Process for payment or delete the invoice if not needed.
⚠️If the payment was processed in one month and voided in another month, you will need to record journal entries in your accounting system since Aspire will remove the payment.
Scenario 7: Voiding a Payment That Has Been Sent to Accounting
In some situations, depending on the frequency of processing deposits, the void payment option may still be available even after you have sent the payment to Accounting. However, in this scenario, you will need to void the payment in Fiserv, not Aspire.
Solution:
Use the Transaction number to find the Electronic Payment in Fiserv or use the Reference Number from Aspire.
To find the Reference Number in Aspire, go to Invoicing → Payments → Click needed payment → Reference # will appear on the right
Use the void option that will allow you to void the card or bank account directly from Fiserv.
🧠 If the void option is no longer available from the dropdown, that means your payment will be processed. If this happens, you will need to go to the If Your Customer Pays But Requests a Refund, under the Fiserv section.
Record the electronic void in the Accounting system by Debit Refund and Credit Cash.
You will need to create a Misc. Invoice in Aspire called Clean Up A/R. This will be recorded in the Accounting System at the EOM.
Process an electronic payment to apply toward the remaining amount due.
Example – Below is an Illustration of the GL entries from beginning to end. This is an illustration of the entries that will be created with the process. You will not create this entry, we’re trying to give you an overall picture of the activity that will occur. The debits are a positive number, and the credits are a negative number.