This article describes how to refund an overpayment or prepayment made by a tenant, by creating the following transactions:
A positive charge to the deposit refund account.
A zero receipt to tie the deposit refund charge to the overpayment/prepayment.
A payable using the deposit refund account as the expense account.
This process is typically used when you are looking to reduce the balance in the cash account/refund the tenant. If you are looking to simply show that you received an overpayment and it impact your income statement you can create a credit - it is not necessary to use deposit refund in this case.
To refund an overpayment/prepayment
Open the Tenant screen. Click the Add Charge button. This new charge needs to be linked to the prepayment. These can be tied together with a zero-dollar receipt.
In the Add Charge screen, select the Deposit Refund charge code and enter a positive amount (for the amount of the overpayment/prepayment you are going to refund).
Click Save.
On the Tenant screen, select the Receive Payment button.
Breeze opens the Receipt Information screen, showing the charge just created for the Deposit Refund charge code. Check the Apply Prepay box beside the new Deposit Refund charge you created.
Note: You're creating a zero-dollar receipt. Make sure the total is 0.00. If the tenant has any other unpaid charges, make sure you enter 0.00 beside them in the Payment column on your receipt to leave them unpaid. You should only pay the deposit refund charge.
Click Save. Breeze creates a Zero Receipt, shown below.
Go to Accounting > Accounts Payable > Payables > Add New.
Complete a payable to the tenant. Use the deposit refund account as the expense account. (In the default COA, the deposit refund account is the 2270 Clearing-Tenant Deposits account. You can check your deposit refund charge code to make sure you are selecting the right GL account.)
The completed payable is shown below.
Process the payable to create a check to the tenant.