As part of the settlement of a sold Stock Item there will often be payouts (where the trade has an encumbrance, money owing to a financier, that must be paid out) or a refund (where the customer has overpaid and must be refunded an amount).
This is typical in the case of a ‘back-trade’ where a customer has purchased a stock item valued at less than their trade-in, or alternatively where the customer has paid a deposit on a stock item, then organises finance for the full amount and requests that their deposit be refunded to them. These 2 items are recorded slightly differently.
Record that a Payout is required
The Payout forms part of the settlement of the sale, so must firstly be recorded on the “Settlement” tab of the sold stock card. Use the Edit button adjacent to the “Payout” field to enter details of the Payout required. The Sales Journal will then allocate this amount into the account nominated in Account Settings for Payouts – generally a Liability account called “Payouts Clearing”. This amount will remain in this account until cleared out via a Disbursement transaction. |
When the payout is actually paid, the transaction must be recorded via a ‘Disbursement’ transaction. Complete the details in the normal way, such as date, cheque number etc. The Payee should be recorded as the finance company to which the payout is made. Enter details of the payout such as the stock number to which it related, and allocated the amount to the appropriate account – Payouts Clearing. |
Record that a Refund is required
The Refund forms part of the settlement of the sale, so must firstly be recorded on the “Settlement” tab of the sold stock card. Use the “Refund” field to the Refund required. The Sales Journal will then allocate this amount into the account nominated in Account Settings for Refunds – generally a Liability account called “Refunds Clearing”. This amount will remain in this account until cleared out via a transaction. |
When the refund is actually paid, the transaction must be recorded via a ‘Disbursement’ transaction but is easily done from a link on the stock card. From the Settlement tab of the sold stock item, open the "Edit" button adjacent to the Refund field. A Disbursement entry will open with most details complete. Simply check the bank account and payment details then press Process. |