How Does Deleting a Refunded Payment Affect the Bank Deposit Report?

IN THIS ARTICLE:
Learn how the Bank Deposit Report (FIN-2) will reflect a refunded payment after it has been deleted from the family ledger.

You can view more information about deleted refunds and how they are reflected on the Bank Deposit Report below:

How iClassPro records a deleted refund

With iClassPro’s ledger system, the full history tracking comes in really handy. But in the case where an employee took a payment, refunded it, then deleted it—we ran into a bit of a pickle. Why? Because now you have 3 actions, which have no mathematical way to even out at the end of the day.

So when you delete a payment that has been refunded, we automatically delete the refund transaction as well to balance the ledger. Here’s a snapshot of what really happens:

  • Take the payment           + $108
  • Refund the payment       -  $108
  • Delete the payment        -  $108
  • Auto-Delete the refund   + $108

How the Bank Deposit Report reflects the deleted refund

More specifically, here’s how the transactions will look in your Bank Deposit Report.

Bank_Deposit_Deleting_Refunded_Payments.png

  • Entry 1 - This entry represents the original payment with a note about when the payment was deleted "Deleted On (DELETED DATE) Check#"
  • Entry 2 - This entry represents the payment being deleted with a note referencing the original payment date "Deleted Payment (PAYMENT DATE) Check#"
  • Entry 3 - This entry represents refunding the payment with a note about the deleted date  "Deleted On (DELETED DATE) Refund (REFUND DATE) Check #"
  • Entry 4 - This entry balances the deleted refund with a note about when it was deleted "Deleted Refund (DELETED DATE)"

Why add back in a positive value when we delete the refunded amount?

Because when you delete a refund, in the grand scheme of things, you are pretending as if you never gave back the money to the customer in the first place. Therefore, we must add a positive value back in to balance everything out.

(Please note that if you did refund the payment, deleting it will not change the transactions that have taken place. It is simply a record keeping option at this point.)

How does that figure into the Bank Deposit totals?

Good question. You’ve got a sharp eye!  But we already thought about that.

We wouldn’t want the deleted transactions to inflate your income for the day (in reality, you were still only paid a total of $108 and refunded $108, not $216). Therefore, if a payment has been refunded then deleted, we simply let the extra two entries for the deletion cancel each other out and fall off the report for subtotals.

We just keep them around in the report to maintain the full history of the transaction.

Review the totals below for a visual explanation:

Bank_Deposit_Deleting_Refunded_Payments_Full.png

What about the Program Deposit Split Report totals?

The Program Deposit Split Report will also show the full history of the payment, divided into Program totals. Don't worry, the totals still match between the reports.

Program_Deposit_Split_Deleted_Refunded_Payments.png

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