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Customers may request a credit against an outstanding invoice or a refund of monies already paid. It is the responsibility of the Department to ensure checks have been made to substantiate customer claims before refunding or issuing a credit memo. Written confirmation should be received and retained for audit purposes.

Refer to the UFS web pages for details on how to raise credit and debit memos.

Departments should develop an internal policy for refunds, which may include charging an administration fee to the customer if the University is not at fault. The fee may be deducted from the refunded value if the customer was made aware of the possibility of the fee prior to the initial payment.

The University's Standard Terms & Conditions separately outline the charges that the buyer is liable to if they cancel the order for the goods and services before the goods are delivered or the services performed.

Customer invoice still outstanding

An outstanding invoice to an external customer requires a credit memo:

  • Create credit memo against the full or partial value of the original invoice value - use the same GL code as the original invoice.
  • Apply the credit memo against the original invoice within the Transaction Summary screen.
  • Complete, print and send credit memo to customer.

Customer invoice already paid

If the invoice that requires a refund has already been paid:

  • Create a credit memo to the full or partial value of the original invoice value - use the same General Ledger (GL) code as the original invoice (referencing the original invoice number and details).
  • Create a debit memo to the same value as the credit memo - use the same cost centre and source of funds code as the original invoice but a transaction code of LKMD.
  • Complete, print and send the credit memo only to the customer (a requirement of HM Revenue Customs).
  • Apply the credit memo to the debit memo via the 'transaction summary' screen.
  • Use the debit memo as the source document for inputting into AP in order to request a cheque.

Payment has been received by credit card

Payments received by credit card must be refunded to the customer on their credit card in much the same way as detailed in the paragraph above. The only difference is that the debit memo is not input into AP, instead create a negative miscellaneous receipt without a credit card receipt batch for the required refund value and code it as per the debit memo.

Payment has been received by BACS

Payments received by BACS are currently being refunded by cheque. Therefore, follow the procedures outlined in Customer invoice still outstanding and Customer invoice already paid above.

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