Refunds on transaction report

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  • Updated 2 years ago
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  • (Edited)
How are refunds handled in the Transactions report?

If I have $100 of billings and they are all paid, I have $100 in the Total Billed box and I have $100 in the Total Received box. If I then give a refund of $60, I assumed I would have $40 in the Total Billed box and $40 in the Total Received box. But, this is not the case. Rather it stays as $100 in each. This therefore does not give a correct figure for total billings and total receipts.

Is there something I am missing?
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Trevor

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Posted 4 years ago

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Andrew, Community Manager

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Hi Trevor

The Net Billed and Total Received amounts shouldn't change because a refund has been given. I understand other software may not follow the same logic, but a refund being given doesn't mean the amount wasn't billed or the payment not received, which is what is being reported here.

Part of the reasoning behind this is that not all practices want to deduct refunds directly from their payments, and might choose to issue refunds in other ways.

This may come down to a matter of opinion and what you are used to, but it is reporting as intended.



If you're curious to know exactly what is being calculated on the Net Billed or Total Received fields you can also hover your mouse over them to see.

(Edited)
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Trevor

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Hi Andrew

Thanks for the reply.
When I do my BAS, my Total Sales is Total Billed - Refunds. When I do my tax, my Total Sales is Total billed - refunds. A write off (bad debt) is often from a long time ago (many months) and there is a category in the tax form for bad debts so I don't think this needs to be included in the Net Billed calculations.
Also, when using FD figures as above, my cash draw is out of balance.
I would be interested to hear the thoughts of others on this matter.
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Timothy, Business Care Manager

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Hi Trevor. In relation to refunds and your cash draw, refunds in Front Desk do not decrease the amounts in Transaction reports or the Banking Sheet/Shift report summary (your cash draw) as we don’t feel it is best practice to pay out refunds from your daily takings. Options for refunds are a cash refund from another refund float, credit card refund, direct bank debit or cheque. Whichever options you make available in your practice, you need to track and record the refunds in your accounting system accordingly. 
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Joyaa Antares

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I ran into this problem this week Trevor. Chiefly because I used FD's "refund" button for a client. My staff have now advised me that they are unable to utilise the "refund" button in FD because - as you say and I think Tim confirms - the transaction report totals don't reflect what actually happened (see below). Apparently our team's workaround is to delete the original transaction and then re-bill the client and at the same time put on a "reduction" to reflect the amount of the refund. Effectively we are "erasing history", which I suspect would attract strong disapproval from the ATO.

You asked to hear "others' thoughts" on this matter. As (I hope) you can see from the patient no's in the attached, the refund at the bottom was for patient no.5 on the list. The refund shows in this transaction report (Banking sheet/shift report - transaction report), but when I opt for Banking sheet/shift report - Summary - Received only, the EFTPOS total is IMO misleading. Well, it misled us anyway!

Andrew - I understand your (and the system's) logic in relation to "Net Billed", but not in relation to "Total Received". To my mind, a refund is a "negative" amount received and need to be deducted from the "Total Received".

Hope this helps.

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Rachel Bruce

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Yes, i had the same problem too recently. Would love to be able to attach a refund to the specific transaction it was for to keep a clear "paper trail" of exactly what has happened and where the refund was applied.

Thanks