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 (most frequently used method)
  • Do a simple two line Journal Entry
  • Populate the 'Expense/Revenue Account' and 'Cash Account' fields in the Adjustments 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.   Check 'complete refund'
  8.   Check 'reinstate grant amount'
  9.   If you are using the third method of depositing your check, enter the Expense and cash accounts into those fields.
  10.   Click Process adjustment
  11.  Review the Adjustments report and click 'Commit Changes'
  12. Go to Accounts Payable and post the debit memo that has been created.  This will reinstate the open item so a new check can be printed.
If you entered GL accounts in step 8, you will need to go to the general ledger and post the entries that were created.

You can now process a grantee or payee change on the grant or scholarship to change who it is being paid out to.

Note:  A single grant or scholarship cannot be split between two grantees.  If it a partial refund that is being reissued to a separate grantee, follow the steps in article #100978  "How do I Process a grant refund check?" and then create a new grant or scholarship for the refunded amount.