If your organization receives checks or other financial instruments that are not connected to your payment gateway, you may find instances in which you have to issue reversals or refunds. Due the nature of checks and the inability to automatically refund, there are a few extra steps you will need to take to issue a refund for a check. These steps will ensure the proper transactional documentation to capture the reversal (credit) and for your accounting team to accurately capture reversals.
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- Please note, you can systemically refund a transaction processed through your payment processor by accessing the transaction and selecting "Refund" from the action list. More details can be found here.
Instructions: How to Create an Outgoing Payment Record
To create a manual reversal for a transaction such as a check, you will need to identify the transaction and obtain the transaction id as this will be an important step in the outgoing payment process.
Step 2: Next, click on Create New (top of screen) and select Outgoing Payment. This will initiate the workflow to create a reversal to be associated with the original transaction record.
Frequently Asked Questions
Q. How do I automatically process a refund for a donor?
A. If the transaction was processed by credit card through your payment gateway, you can process a refund systemically by following the Refunds article located here.
Q. How do you locate reversal in the transaction listing screen?
A. To locate reversals or credits within your account, access the Donations app > Transactions > Search & Manage > Advanced Search > Payment Tab > Accounting = Negative > Apply. Note, add other search criteria to assist in targeting specific dates and/or transaction types.
Q. I'd like to receive a monthly report of reversals made in my account. How do I establish a recurring report?
A. Creating recurring reports is a great way to have information delivered at the frequency you need. You can use our report builder tool to create a recurring report. See our article on using our report builder tool here. For more information on how to make the reported shared across users and/or how to schedule, please see our article on how to schedule and share.