How do I process a grant refund check?


We sent a check to a grantee and they cashed it.  Since they didn't need all (or part) of it, they sent one of their checks back to us as a refund or reimbursement.  How do I handle that?
Often, a check is sent to a grantee who needs to return all or a portion of the money after they have cashed the original check. This frequently occurs with scholarships- a student either doesn't attend that semester or is changing schools.  When some portion of the payment is returned, you will need to process a refund to the grant.

There are two main parts to processing a refund:
  • Record the receipt of the check
  • Adjust the Grant or Scholarship record

To Record the receipt of the check you can do one of the following:
 
  • Process a Non Gift in the Gifts Module
  • Do a simple two line Journal Entry
  • Populate the 'Expense/Revenue Account' and 'Cash Account' fields in the Adjustemts window when adjusting the Grant.
     
In each of these cases you will be debiting the cash account that you are depositing the check into and crediting either the Grant Expense account or a Refund Revenue account.

To adjust the Grant Record:
 
1.  Open the Grants Module and go to the Application History Tab
2.  Open the Grant to be adjusted
3.  Go to the Adjustments Tab
4.  Select Grant Adjustments and click Run Process
5.  Enter the date of the Refund as well as a Status and Reason if you choose.
6.  Click the Refund radio button
7.  Either check 'complete refund' or enter a refund amount in the grid below.
8.  If you are using the third method of depositing your check, enter the Expense and cash accounts into those fields.
9.  Click Process adjustment
10. Review the Adjustments report and click 'Commit Changes'

A Grant refund will not create a debit memo to be posted in accounts payable.  If you entered GL accounts in step 8, you will need to go to the general ledger and post the entries that were created.




 

Environment

 FIMS

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