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Refunds in PFM

 

Refunds done through your online payment system

Refunds by cheque

Refunds by BACS

When you receive a refund

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Refunds - so you've probably got lots of refunds going on of course for trips, clubs and much much more.

 

Process them on PFM as follows:

 

a. Refunded via Online Payment system directly to parents
If you are refunding on your online payment system, then the provider will need you to pay them the amount refunded.
 

Some providers are requiring this payment in advance of paying parents, other in arrears.

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To process this in PFM:

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IF you use a holding account (dummy bank account) for your online payments


Record the ACTUAL payment you have made to cover the refunds to the provider (eg ParentPay)  as a BANK TRANSFER (not a payment) - from the bank account making the payment - into the HOLDING account on PFM. So this is the OPPOSITE way to usual.

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Enter the cheque or BACS detail in the narrative section, and the amount as the total paid. 

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If there's been some money received that is NOT to be refunded, as well as some that is being refunded, do the bank transfer for the ACTUAL amount that has changed hands, even if you know it will change the following period.

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If you have had money from parents that is not to be refunded that is MORE than the amount of the refunds, then the amount that you receive from the online provider should be entered as usual as a bank transfer FROM the holding account, into your bank account.

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Download from your online payment system as usual
- When the refunds have been processed onto your online system, do a download in the usual fashion and save the refunds into your HOLDING account as usual. 
- Enter any fees in the usual way, processed to the HOLDING account.

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Reconciling

When we reconcile, the amount of refunds processed should balance the amount that you paid the online provider less any fees.  BUT be aware that you may need to be FLEXIBLE as it can take a few weeks for everything to catch up and balance out.

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IF you DO NOT use a holding account (dummy bank account) for your online payments


OK, this will sound a little odd, but record the ACTUAL payment you have made to cover the refunds to the provider (eg ParentPay)  as a BANK TRANSFER (not a payment) - FROM AND TO the bank account making the payment - yes, it's odd, and yes it's the same bank account for from and to.   Enter the cheque or BACS detail in the narrative section, and the amount as the total paid. 

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On your bank rec screen you will now have an amount in the payment column that is the amount you paid to the online provider - so you can reconcile your bank account quickly and easily using this figure.

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It will leave you with all the individual refunds in the payment column PLUS a total figure in the receipts column - enter any fees in the usual way and the two sides (payments and receipts) should balance each other out.  HOWEVER you have to be flexible, as there is often a lag with this. 

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If there's been some money received that is NOT to be refunded, as well as some that is being refunded, do the bank transfer for the ACTUAL amount that has changed hands, even if you know it will change the following period.

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Download from your online payment system as usual
When the refunds have been processed onto your online system, do a download in the usual fashion and save the refunds into your bank account as usual. 
Enter any fees in the usual way, processed to the bank account.

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Reconciling

When we reconcile, the amount of refunds processed should balance the amount that you paid the online provider less any fees.  BUT be aware that you may need to be FLEXIBLE as it can take a few weeks for everything to catch up and balance out.

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b. Refunding by individual cheques
Use Transaction Entry - RECEIPTS - Refunds. Select the appropriate short code.

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If you are refunding everyone for a trip for example, say YES to refund ALL and YES to refund in full. Enter the first cheque number, then use the down arrow to allocate the other cheques. Click FINISHED and BANK IT - choose your bank account.

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c. Refunding by BACS by creating a manual file through your BACS system
If you can create a manual BACS file directly onto your banks BACS system (ie not generate by PFM)  you will just need to record what you have done on PFM as a TOTAL refund amount against the trip.

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You COULD do this by processing individual refunds to each student - it would mean you could then look up the students in the future and see their payments and refunds. 

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OR you can take the view that we just want to balance the trip as a whole, so it is much quicker and easier to process ONE BIG refund to the trip.   Before doing this, make sure you have a RESPONSIBLE PERSON allocated to the trip - go to Accounts Maintenance and add one if you need to.

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Then use TRANS ENTRY - RECEIPTS - REFUNDS - say No and No - select the Responsible Person tab top left - enter the TOTAL amount refunded against their name - in cheque number enter B for BACS - FINISHED and BANK IT. Choose appropriate bank account. The BACS payment shows as a single item for reconciliation.

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If you want to see the individuals refunds against each student, use TRANS ENTRY - RECEIPTS - REFUNDS - say No and No - select the first student - enter the amount refunded against their name - in cheque number enter B for BACS and repeat for everyone else - then click FINISHED and BANK IT. Choose appropriate bank account. The BACS payment shows as multiple items for reconciliation.

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d. Cancellations - processing refunds received for payments you have made, or processing insurance claims received
Some schools have asked about how to process money they are getting back from travel companies, theatres etc., for cancelled events.


Although these feel like receipts as you have received money, from an accounting point of view they are really negative payments. If this is received as a cheque, it is recommended you put them into the bank on a separate paying in slip.


To process these payments use TRANSACTION ENTRY - PAYMENTS - CANCEL PAYMENTS. Select the short code, enter cheque number if appropriate, enter the amount and date.

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Online
BACS
Cancellations
Cheque
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