There are three options for handling re-pays in Confido: positive line on a credit memo, journal entry, or creating an invoice. Below, we outline the benefits and drawbacks of each, as well as how to configure your settings.
Positive Credit Memo Line
Overview: This is the simplest method for handling re-pays. Rather than creating a separate accounting entry (e.g., journal entry), the re-pay is included as a positive line item on the credit memo. This works best when re-pay amounts are consistently smaller than the total deduction amount on the same check.
Drawback: If the re-pay amount exceeds the total deduction amount on the check, the credit memo will have a net positive total. Credit memos must be negative in most ERPs, so this will cause a push error. If you regularly receive checks where the re-pay is larger than the deductions, use the Journal Entry or Invoice method instead. Note that if journal entries are not suitable for your brand, you can still use this method, but you would need to allocate the repay across other checks to ensure there is not a positive credit memo total.
Setup:
Select Settings on the left-hand nav
Select Deduction Handling
Turn on Allow positive line items on Credit Memos
Workflow:
If Confido can identify that a line item on the check is a re-pay, it will classify it as such automatically. Then, update the type to Deduction
Otherwise, you can manually update the type to Deduction — the amount will appear as positive rather than negative
When pushed to your accounting system, the re-payment posts as a positive line on the credit memo alongside your deductions
Journal Entry
Overview: This method posts a two-line journal entry to your accounting system for each re-pay — one debit line and one credit line — for the re-pay amount. The journal entry is linked to the customer and the originating payment. This is the default method and works well for teams that want re-pays clearly separated from credit memos in their GL.
Drawback: If your ERP has a journal entry approval workflow, Confido will not be able to push successfully until that rule is removed or reconfigured. Please notify the Confido team if this applies to you. Additionally, this can sometimes lead to GL clutter, if your brand receives a significant number of re-pays.
Setup:
Select Settings on the left-hand nav
Select GL Accounting Customization
Scroll to Re-Pay Settings and select Journal Entry
Debit Account: Must be A/R
Credit Account: Any account you’ll post to (you can configure multiple)
Workflow:
If Confido can identify that a line item on the check is a re-pay, it will classify it as such automatically
Otherwise, you can manually update the type to Re-Pay
The default debit and credit accounts from your settings will pre-populate, but you can modify them on a per-line basis
Link the corresponding deductions (if applicable)
Click Save or Push to GL
A journal entry will be posted in your accounting system and linked to the payment
Invoice
Overview: This method creates a new sales invoice in your accounting system for the re-payment and immediately posts payment to the corresponding newly created invoice. This works best for teams whose workflow requires re-pays to be received against an open invoice, or who want re-pays to flow through their standard invoicing and payment application process.
Drawback: It can be challenging to differentiate between what is actually an invoice payment and what is a repay, particularly from an audit perspective. Note there is customization available to add fields for repays that differentiate between standard invoice payments and repays treated as invoices.
Setup:
Select Settings on the left-hand nav
Select GL Accounting Customization
Scroll to Re-Pay Settings and select Invoice
Workflow:
If Confido can identify that a line item on the check is a re-pay, it will classify it as such automatically
Otherwise, you can manually update the type to Re-Pay
The Invoice Number will be prepoluated from the check (can adjust if needed)
Select the Reason/GL Item to categorize the re-pay (typically the same item used on the initial deduction/dispute)
Link the corresponding deductions (if applicable)
Click Save or Push to GL
A sales invoice will be created in your accounting system for the re-pay amount, linked to the customer, and automatically closed (marked as paid)
