The Difference Between Credits and Refunds

The difference between Credits and Refunds (charges and fees)

The difference between 'crediting' a charge and 'refunding' a fee are all due to allocation of monies.

Until the point money has been received a charge can be credited.

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For any agency Fees, once the money has been received you can only refund, even if the landlord statement has not yet been generated.

To refund a fee, there must be enough money in the ‘Pay Agency’ before fees are drawn down. This is because the refund fee will create a debit entry from the agency fees.

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For other expenses, where there has only been part funds received you would need to credit the outstanding balance and then refund the part which had been received.

If the demand that has been added is a rent demand, then the demand can be credited up to the point where the landlord statement is generated. If there is money allocated against the demand then the money will be allocated to the next demand on the ledger or will appear on the ledger as credit.

 

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