Crediting back Finance Charges that have already been paid

T4KB · ‎September 05, 2024

Our HOA has been involved in a lawsuit with a group of owners that refused to pay their assessments. Finance charges were applied. Now to try and bury the hatchet it has been decided to forgive / refund the Finance charges.

For the FC invoices that have not been paid, I believe I can just delete them. For those that have a payment against them I get a system error C = 47. How do I 1) correct this issue and 2) What is the proper sequence to remove these FC Invoices from the customer's record.

T4KB

Is this a possible solution to this issue:

Go to your menu Banking then Write Checks.
Choose the appropriate bank account
Choose the appropriate check number and date.
Choose this same customer in the Pay To The Order Of field.
Fill in the amount of the overpayment you wish to refund.
Very important to choose Account Receivables in the expenses tab near the bottom of the screen.
Click Save & Close.

Note, if you get a warning that states "Please choose a customer when using an Accounts Receivable account as a line item" then choose this exact same customer in the field (within the same Expenses tab off towards the right) called Customer: Job if this field does not exist, then you may have to change a company preference setting.

Now, If you look at this customer's AR balance, this check refund should be reflected here, however, you still need to apply this check refund to the overpayment credit; otherwise, these two line items will always appear as open. To do this:

Highlight the customer in the customer list, then click on New Transaction (at the top of the customer list, not in the company menu list) and choose Receive Payments.
Within the Receive Payment screen:
- Don't fill in a payment amount; instead, just highlight (not checkmark) the outstanding check payment amount as listed in the open invoices list, then click on Discounts & Credits listed as one of the button items towards the top.
- Find the Available Credit which is the overpayment amount and be sure it is check marked. click Done.

You will now notice there is a new column called Credits and thus the NET of the Amount Due + Credits is equal to zero.

View solution in original post

SashaMC

Hello T4KB,

Thank you for reaching out to the QuickBooks Community! To answer your questions, let's start by correcting that error, which should resolve everything else. Most users found the steps below to resolve their issue.

On your keyboard, press Windows+ E to open the Computer window.
Note: In Windows 8, click the Computer tab.
Click Uninstall or change a program.
Select QuickBooks.
Once QuickBooks is selected, click Uninstall/Change.
In the QuickBooks Installation window, click Next.
Select the Repair radio button, click Next, and then click Repair.
Click Finish.
Reopen the program and test it out.

Let me know if you were able to make those changes or if the issue persists! I will be here looking forward to your reply!

T4KB

I have done the repair of QBDT out of principle. However, I would like to know the proper procedure to remove the FC invoices and credit or refund the paid amounts.

FateCandylaneT

I appreciate the troubleshooting steps you've performed, T4KB. I'll provide information to help remove Finance Charges applied to the transactions and refund the paid invoice amounts.

In QuickBooks Desktop, you can delete the Finance Charge (FC) invoice entry to exclude them from the customer's record. Deleting them will make the payments as unapplied credits where you can apply them to your next invoicing. Thus, creating a refund transaction won't be necessary.

To guide you with the process, refer to the steps below:

In your QBDT account, go to the Customers menu and click Customer Center.
Find the specific customer where the FC invoice transaction is.
Select on the Finance Charge transaction and click Delete.
In the Delete Transaction notification, click OK.
Credits will then be available to be applied in your next entry.

Moreover, I'm sharing these references to guide you in managing customer statements and payments in your account:

If you have any additional queries managing customer transactions in your file, feel free to reply in this thread. I'm always around whenever you need help, keep safe!

T4KB

The repair of the QB Installer software fixed the C = 47 error and I was able to delete the FC Invoices that had been paid. Now to reimburse the credit balances I want to be sure to follow the correct procedure. I think I need to create an Item like "Reimbusement". Then issue a Credit Memo to assign the amount and then process as a Refund.

Is that correct?

Clark_B

Let me chime in and provide clarifications about crediting finance charges that have already been paid, @T4KB.

To begin with, there's no need for you to create a reimbursement or issue a credit memo because you've already deleted the Finance Charge (FC) invoice that has been paid. By deleting the FC, this will automatically turn the payments into unapplied credit which you can then apply the available credits to your Credit Memos/Refunds.

To apply the credits to your refund, here's how:

Go to the Customers menu and select Create Credit Memos/Refunds.
Select the customer for whom you want to apply for the credits.
Select the Use Credit to apply to invoice option under the Use Credit to give refund menu.
Review it and then select Save and Close.

For future reference, you can check this article to learn more about receiving and processing customer payments for invoices: Take and process payments.

If you have further concerns about applying the credits, please tag me in the comment section, @T4KB. I'll assist you in any way possible.

FishingForAnswers

@Clark_B "By deleting the FC, this will automatically turn the payments into unapplied credit which you can then apply the available credits to your next invoice transactions."

Rather sounds like @T4KB wants to refund the money to the homeowners in question.

That is not the same thing as giving them 'in-store credit'.

T4KB

That is correct FishingForAnswers the amount for some is several hundred dollars and they want a check. Playing around in QBDT it appears that I can search through Customer Payments where the credits do show. However, the way the payments were made the credits span across multiple payments. I can't give multiple checks and if I fudge the check numbers the Register will be a mess.

T4KB

Is this a possible solution to this issue:

Go to your menu Banking then Write Checks.
Choose the appropriate bank account
Choose the appropriate check number and date.
Choose this same customer in the Pay To The Order Of field.
Fill in the amount of the overpayment you wish to refund.
Very important to choose Account Receivables in the expenses tab near the bottom of the screen.
Click Save & Close.

Note, if you get a warning that states "Please choose a customer when using an Accounts Receivable account as a line item" then choose this exact same customer in the field (within the same Expenses tab off towards the right) called Customer: Job if this field does not exist, then you may have to change a company preference setting.

Now, If you look at this customer's AR balance, this check refund should be reflected here, however, you still need to apply this check refund to the overpayment credit; otherwise, these two line items will always appear as open. To do this:

Highlight the customer in the customer list, then click on New Transaction (at the top of the customer list, not in the company menu list) and choose Receive Payments.
Within the Receive Payment screen:
- Don't fill in a payment amount; instead, just highlight (not checkmark) the outstanding check payment amount as listed in the open invoices list, then click on Discounts & Credits listed as one of the button items towards the top.
- Find the Available Credit which is the overpayment amount and be sure it is check marked. click Done.

You will now notice there is a new column called Credits and thus the NET of the Amount Due + Credits is equal to zero.

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Crediting back Finance Charges that have already been paid