How do you totally refund a gift or do a partial gift refund?
- 01 Feb 2023
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How do you totally refund a gift or do a partial gift refund?
- Updated on 01 Feb 2023
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Occasionally a gift will need to returned to the Donor. This is how those refunds should be processed.
Answer:
I. Reverse the Gift
In the Gift Module go to the Gift History tab and find the Gift that needs to be refunded.
II. Create Vendor Record for Donor
III. Issue Refund Check
a. Go to the Accounts Payable module and go to the Item Entry supertab.
b. Enter a new AP Item by clicking the New button on the toolbar.
c. Select the Donor as the Vendor, and fill out the necessary fields on the Item tab including the Description and Invoice No.
e. Click on the Line Items tab and
f. Click the New button on the toolbar.
g. On the Line Amount field enter the amount of the refund.
i. On the first Expense line, choose the Accounts Payable account instead of an Expense account.
k. Run the Edit and Post.
l. Go to the Open Items supertab and print the refund check.
m. Post the check print entries.
In the Gift Module go to the Gift History tab and find the Gift that needs to be refunded.
a. In the Gifts module, click the Gift History supertab.
b. Use the Gift History Browser to locate the Gift that needs to be reversed.
c. Select the desired Gift and then click the Adjustment tab.
d. Click the Reverse Gift button.
e. You will see the Gift Reversal Date window opens. Enter the Reversal Date you want to use to reverse the Gift.
f. Click OK
g. FIMS will create an un-posted adjusted gift that will be created in the Un-posted Gifts tab.
h. Post the adjusted gift record and now reversal will be complete.
NOTE: If the refund is a partial refund, you would reverse the original gift, enter a new gift for the correct amount, enter a journal entry to record a debit to cash and credit to AP for the amount to refund. Enter a voucher in AP using AP account as expense, then create a check to the donor. See attached document for processing partial refunds.b. Use the Gift History Browser to locate the Gift that needs to be reversed.
c. Select the desired Gift and then click the Adjustment tab.
d. Click the Reverse Gift button.
e. You will see the Gift Reversal Date window opens. Enter the Reversal Date you want to use to reverse the Gift.
f. Click OK
g. FIMS will create an un-posted adjusted gift that will be created in the Un-posted Gifts tab.
h. Post the adjusted gift record and now reversal will be complete.
II. Create Vendor Record for Donor
a .Go to the Profile module, find and select the Donor Profile record. You need to add them as a Vendor so that you can issue a refund check to them.
b. Click on the Vendor tab
c. Click on the New button on the toolbar
d. Click Save.
b. Click on the Vendor tab
c. Click on the New button on the toolbar
d. Click Save.
III. Issue Refund Check
a. Go to the Accounts Payable module and go to the Item Entry supertab.
b. Enter a new AP Item by clicking the New button on the toolbar.
c. Select the Donor as the Vendor, and fill out the necessary fields on the Item tab including the Description and Invoice No.
>Tip: For Invoice No., you could enter the Gift Number or today's date.
>Invoice Date defaults to today, but you can change it if necessary. This will become the GL Apply Date.
d. Click Save. >Invoice Date defaults to today, but you can change it if necessary. This will become the GL Apply Date.
e. Click on the Line Items tab and
f. Click the New button on the toolbar.
g. On the Line Amount field enter the amount of the refund.
>The Description should default in from the Line Item tab (if not, fill it in).
h. Click on each GL account lookup button and search for the GL accounts belonging to the Fund the Gift originally went to.i. On the first Expense line, choose the Accounts Payable account instead of an Expense account.
>The lines should look like this:
Expense: Accounts Payable account
Payable: Accounts Payable account
Cash: Cash account
j. Click Save.k. Run the Edit and Post.
l. Go to the Open Items supertab and print the refund check.
m. Post the check print entries.
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