Reverse Prepaid (PPD) and Refund the Client

To refund prepaid funds, first create a cash receipt that reverses the prepaid amount. Then create a quick check to refund the client. The negative cash receipt reverses the PPD asset and liability entries. The quick check refunds the client without changing the G/L cash account balance.

When you have a prepaid balance that you need to refund to a client, there are two steps involved; first you reverse the prepaid amount, and then you can create a quick check to refund the amount to the client.

Reverse the prepaid amount

Reversing the prepaid amount credits the prepaid cash asset account and debits the PPD liability account.

Start Juris and log in.
Double-click Transactions.
Click Cash Receipts.
Select Form > New > Cash Receipt.

A new batch window opens.
In Batch Comment, enter a name for the batch, or accept the default.
Select Form > New.

A new cash receipt window opens.
In Deposit Date, enter a deposit date, or accept the default of today's date.
In Check Number, enter CLIENTREF.
In Check Date, enter a date, or accept today's date.
In Check Amount, enter 0.00.
Leave Payor blank.
Click the PPD tab.

The Payor field is automatically populated when you enter the matter number on the PPD tab.

Enter the PPD reversal

In Client, enter the client number.
In Matter, enter the matter number.
In PPD Amount, enter the refund amount as a negative amount.

Enter the offset on the Other tab

Click the Other tab.
In Bank Code, enter the code for the bank that the check will be written from.

If you do not know the code, right-click in the column row to open the Bank Account Finder window and select the code.
In Account #, enter an account number.

You can also right-click in the column row to open the Chart of Accounts Finder window and select an account.

You can use any account number, because you will offset it with a check refund to the client. Do not enter the account number in Bank Code.
In Amount, enter the refund amount as a positive amount.
In Reference, enter a short description for the action.
Select Form > Save.
Close the cash receipt window.
Close the batch window.
Post the cash receipt batch. For more information, see Post a Batch.

You are now ready to create the refund quick check.

Refund the client

To refund the client, create a quick check. Quick Checks allows you to enter a check and voucher at the same time.

This action debits and credits the operating account and has no effect on the G/L cash account. The debit to the PPD liability account and the credit to the PPD asset account were made with the negative cash receipt entries.

Start Juris and log in.
Double-click Transactions.
Click Quick Checks.
Select Form > New > Quick Check.

A new batch window opens.
In Batch Comment, enter a name for the batch, or accept the default.
Select Form > New.
The Quick Check window opens.
In Bank Account, enter the bank account used for the refund, or click the ellipses button to select it from a list.

Create a temporary vendor

Select Tools > Temp Vendor.
In Vendor Name, enter the name of the client receiving the refund.
In Address, enter the client's address.
In City / St / Zip, enter the client's city, state, and ZIP code information.
In Contact, enter the contact name if the vendor is a company or if the contact is different from the client name.
Select Form > Save.

The Vendor Number field on the Quick Check is automatically populated with TEMP to indicate that this is a temporary vendor.

1099s cannot be generated for temporary vendors. Do not use a temporary vendor for any client or vendor requiring a 1099.

Enter the quick check voucher details

Select Form > New to add a new row for the payment.

This lets you set up a new payment voucher.
Double-click the Your Invoice No. column.

The detailed Quick Checks voucher window opens.
In Invoice Number, enter the invoice number to use.
In Invoice Amount, enter the same dollar amount entered in Amount on the Other tab of the cash receipt.
Double-click the G/L Distributions icon at the bottom of the detailed voucher window.
In G/L Account, enter the same account number entered in Account # on the Other tab of the cash receipt.
In Distribution Amount, enter the same dollar amount entered in Amount on the Other tab of the cash receipt.
Select Form > Save to save the G/L distributions and return to the detailed voucher window.

Juris credits and debits the account used for the G/L distribution and the cash receipt. The credit comes from the cash receipt, and the debit comes from the check.
Select Form > Save in the detailed voucher window.
Close the detailed voucher window.

The Quick Check is populated with the information entered in the detailed voucher window.

Select Form > Save.

The Check Printing window opens.

Print or record the check

Optional: Select Manual Check if you plan to handwrite the check.

If you plan to print the check, make sure Manual Check is not selected.
In Check Number, verify that the starting check number is correct. If you are handwriting the check, enter the check number.
In Check date, enter a date, or accept the default.
In Print To, select the printer where the check should print.
Select Show check number warning if you want Juris to warn you when the starting check number is out of sequence.
If you are printing the check, make sure check stock is loaded in the selected printer before clicking OK. Click OK.

Checks begin printing immediately after you click OK.
Close the Quick Check window.
Close the Quick Checks batch window.

After the process is complete, mail the check to the client.

Debit and credit overview

G/L

Step	Debit	Credit
Original deposit to PPD	PPD Asset	PPD Liability
Reverse of PPD	PPD Liability	PPD Asset
Check to client	Operating Account	Operating Account

Net result: 0

Checkbook

Step	Checkbook impact
Original deposit to PPD	Debit to PPD Asset or Operating
Reverse of PPD	Credit to PPD Asset or Operating
Check to client	Credit only hits the checkbook
Add entry	Debit PPD Asset or Operating

Check reconciliation processing requires the original deposit and the check to the client to be cleared. The Add entry is necessary to offset the reversal of prepaid.

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