Line of Credit Refund Payment

Overview of IL808

Once your organization has logged a payment against a line of credit, the line may retain a refund balance. This is an excess amount to be repaid to the borrower. A line of credit usually carries a refund balance when a cash receipt used for a payment is larger than the amount required in order to pay off the credit balance and/or interest due.

Line of Credit Refund Payment should be used when issuing a refund for a line of credit with an existing refund balance. It provides a temporary holding place for potential refunds and gives your organization an ability to restrict who is allowed to initiate outgoing payments. You also have the option to create a refund payment immediately while recording the line of credit payment in Line of Credit Payment