Table of Contents
Overview
There are a few different scenarios that come up that a refund will need to be created. 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: Clover Connect
The last option of Add New Payment Method, is only available for companies who integrate with our electronic payment partner, Clover Connect. 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 Clover Connect.
🧠 If you do not have the Clover Connect integration, you will use the Aspire Payment Methods - Refunding Payments section.
Examples of Aspire Payment Method and Clover Connect
Here are high-level steps for payment processing for Aspire Payment Methods and Clover Connect!
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 Clover Connect: 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. Clover Connect 'authorizes' the credit card or bank account to check for funds ⬇️ 3. System automatically Creates a Payment in Aspire with the Clover Connect integration ⬇️ 4. Add Payment to a Deposit ⬇️ 5. Send Deposit to Accounting System |
💡 Depending on which step in the above process 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 situations may apply to you.
If 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, cut a check for the refund coded to the new Refund Customer/Bounced Check GL within the Accounting system to send to the customer.
Example – Below is an example of the GL entries from beginning to end. The debits are a positive number, and the credits are a negative number.
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 example of the GL entries from beginning to end. The debits are a positive number, and the credits are a negative number.
Clover Connect - Refunding Payments
The two electronic payment methods used by Clover Connect 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 Clover Connect integration.
📌 Note: Clover Connect does not allow for partial void or partial refund of payments.
⚠️ Clover Connect does not notify Aspire of failed or uncollected ACH payments. You should look at the status of your ACH payments in Clover Connect, or your bank to see if you need to record this entry.
If Your Customer Pays and Then Requests a Refund
In this scenario, your customer has made an ACH or Credit Card Payment through Clover Connect. The payment was created and received but needs to be refunded.
Solution:
You will need to go directly into your company’s Clover Connect account and refund the payment.
Use the Transaction number to find the Electronic Payment in Clover Connect 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 Clover Connect. 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 example of the GL entries from beginning to end. The debits are a positive number, and the credits are a negative number.
Clover Connect - Voiding Payments
If you have the option to void, this means that the customer’s payment has not been processed by Clover Connect. 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 Clover Connect, 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 Clover Connect section.
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 Clover Connect 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 Clover Connect section.
Voiding the transaction will open the invoice so there is a balance due.
Process for payment or delete the invoice if not needed.
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 Clover Connect, not Aspire.
Solution:
Use the Transaction number to find the Electronic Payment in Clover Connect 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 Clover Connect.
🧠 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 Clover Connect 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 – This is an example of the GL entries from beginning to end. The debits are a positive number, and the credits are a negative number.
Returned / Bounced / Declined with Aspire Payment Method or Clover Connect
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 New Misc. Invoice as a credit. You would code it to the new Refund Customer / Bounced check GL account in your Accounting System. This will zero that account out in your Accounting System.
Process a New Payment as needed.
Example – This is an example of the GL entries from beginning to end. The debits are a positive number, and the credits are a negative number.