Tuition refunds on year end statements

Sharon Roberts

We had to refund some parents' tuition and did it through payables in accounting. Then in order to get those accounts to a $0 balance, I was advised to enter a refund “fee”. However, now on the year end statements the refund is showing as a payment by the parents. So if they paid $3,100 and got a $100 refund, the statement is saying they paid $3,100. Since parents use this statement for their taxes I really do not want that $3,100 to be the total they use because it's not correct. Does anyone know a good way around this?

Gabrielle Schneider

Curious why they recommended a fee as apposed to a discount. It also depends on how you have set up your fees. If the refund is for a specific fee then we reduce the fee by the amount which would leave a credit on the account provided they were fully paid up. Then you could have a fee called “In School Refund” (what we use) that would zero out the credit. Hope this makes sense to you.