Processing a Homeowner Refund

Homeowner refunds allow property management companies to return excess payments to homeowners when overpayment occurs. This article explains how to create and process homeowner refunds, configure required permissions, and manage the refund workflow through invoice approval and payment processing.

Important: Use homeowner refunds only for returning excess payments. For reimbursements when owners or board members submit receipts for expenses they paid, set up the person as a vendor and create a manual invoice instead. Using homeowner refunds for reimbursements causes accounting errors in both the Homeowner Ledger and General Ledger balances.

Contents

• Create a Homeowner Refund
• Refund Permissions
• Voiding Homeowner Refunds
• Troubleshooting

Create a Homeowner Refund

After a homeowner overpays, you can create a refund to return the excess amount. The refund creates an invoice action item that requires approval before payment processing.

To process a homeowner refund:

1. Navigate to Homeowners > Homeowner Profile > Ledger. 
   The Ledger tab displays. Ensure that the desired homeowner name displays at the top or click it and select a different homeowner.
   
   
    
2. Click Payment Adjustment. 
   The Adjust Payment screen opens.
   
   
    
3. Provide the following information:
   • Adjustment Date: Select the desired adjustment date.
   • Type of Adjustment: Select Refund.  
     Additional fields display.
     
     
      
4. The following two fields require specific permissions.
   • Refund Recipient: Select who should receive the refund (defaults to the primary homeowner). This options requires permissions, see the following Permissions section.
   • Address for Refund: Select where the refund will be sent to (defaults to the primary mailing address). This options requires permissions, see the following Permissions section.
   • Refund via ACH: Select if you want to refund directly to the homeowner's account. This checkbox only displays if the Refund Via ACH permission is enabled, see the following Permissions section. Note: the ACH processor runs from 7:00am-3:30pm local time each day. There is also an hour delay to allow time to edit transactions before they are sent to the bank.
   • Adjustment Amount: Enter the amount you want to refund.
   • Descr: Enter a description for this refund.
   • Attachments (optional): Click Select files and attach any relevant files.
5. Use the Payment Allocation section to select where to allocate the refund as needed.
6. Click Update.
   An Invoice Action Item is automatically created and added to the Manager's Queue for approval. Process the invoice for payment following your standard accounts payable workflow.

Notes: 

• Enter the homeowner account number in the Description field to display which account is being refunded as the homeowner refund is processed. 
• Owner refunds create invoice records in the system, but the actual ledger item on the homeowner account may be different. Always check the homeowner ledger, not just the invoice history.

Important: Voiding the invoice action item will not void the refund adjustment on the owner's account. You must return to the owner's account and delete or adjust the refund.

Refund Permissions

The Refund Recipient, Address for Refund, and Refund via ACH have required permissions that you need to use them. 

To enable these permissions:

1. Navigate to Settings > Roles.
2. Search for the role you want to add the permission to and click the caret beside the name to open it.
3. Go to the Homeowner section.
4. Click Edit next to Homeowner Ledger Advanced Adjustments and select the permissions to enable:
   • View Refund Recipient: Allows users to view and use the Refund Recipient dropdown. 
   • View Address for Refund: Allows users to view and use the Address for Refund dropdown. 
   • Refund Via ACH: Allows users to process refunds via ACH.
5.  Click Save.
   Notes: 
   • For more information about the Refund Recipient and Address for Refund options, see the "Can I change who a refund is for or the address where a refund is sent?" article.
   • To use ACH refunds, the homeowner's account must have an active ACH configuration on the General Ledger. 
   • The ACH processor runs from 7:00am-3:30pm local time each day with a one-hour delay to allow time for transaction edits before bank submission.

Voiding Homeowner Refunds

If you need to void a homeowner refund invoice: 

1. Navigate to the homeowner refund invoice action item. 
2. Click the Hamburger menu, and select Void Invoice. 
   The refund amount automatically reverses on the homeowner ledger regardless of the invoice approval step. This ensures the homeowner's balance accurately reflects the voided refund.

Troubleshooting

Q: I voided the invoice action item but the refund still shows on the homeowner's ledger. How do I remove it?

A: Voiding the invoice action item does not void the refund adjustment on the homeowner's account. Navigate to the homeowner's ledger and delete or adjust the refund directly.

Q: The Refund via ACH checkbox does not display. Why?

A: The Refund Via ACH checkbox only displays if the permission is enabled for your role. Contact your system administrator to enable the Refund Via ACH permission in Settings > Roles > Homeowner Ledger Advanced Adjustments.

Q: I created an ACH refund but it hasn't processed. What should I check?

A: Verify the following:

• The homeowner's account has an active ACH configuration on the General Ledger.
• The ACH processor runs from 7:00am-3:30pm local time. Transactions submitted outside this window process the next business day.
• There is a one-hour delay before transactions are sent to the bank to allow time for edits.

Q: Should I use homeowner refunds to reimburse board members for expenses?

A: No. For reimbursements when owners or board members submit receipts for expenses they paid, set up the person as a vendor and create a manual invoice. Using homeowner refunds for reimbursements causes accounting errors in both the Homeowner Ledger and General Ledger balances. See the "How to Set Up or Edit a Vendor" article for more information.