Number: SOP-AP-01
Subject: Refund Checks
Summary: Process for requesting or claiming a supplier refund check.
Source: University Procurement Services
Date of Issue: 03/24/2021
Date of Revision: 12/28/2023
Disclaimer
Rationale
Credit memos are the preferred method for refunds owed to Indiana University. However, in some circumstances, a credit memo is not possible. In these situations, a refund check should be requested.
Procedure
- Accounts Payable or the department contacts the supplier to request a refund check. The supplier should be provided the following instructions for issuing the refund:
- Checks must be sent to Accounts Payable at:IU Accounts Payable
Attn: Refunds
Cyberinfrastructure Building
2709 E 10th Street
Bloomington, IN 47408-2671 - Refund checks must not be sent to the department.
- The check should reference the PO number and invoice number of the original payment that is being refunded.
- Checks must be sent to Accounts Payable at:
- Once the check is received, Accounts Payable will document which University account the check should be deposited into based on the information on the invoice.
- Accounts Payable will process a Cash Receipt Deposit (CR) document and take this to the campus Bursar with the check for deposit.
- If Accounts Payable is unable to identify the correct account for funds received, the check will be deposited into University suspense account #68-127-87. Those funds will be available for claiming for 6 months.
- Accounts Payable will produce a monthly report of outstanding deposits to the suspense account. This report will be posted at: https://purchasing.iu.edu/resources/doc/Deposited-Refund-Checks.pdf
- Departments expecting refunds that have not been received should review the report monthly to identify any funds to claim.
- If funds belonging to your department were deposited into the default account, a Distribution of Income (DI) should be completed to transfer the funds from 68-127-87, object code 1800, to the correct departmental account. The CR number must be included in the explanation section of the DI to claim your refund.
Definitions
- Unclaimed funds:
- Funds that have been deposited to the default suspense account 68-127-87, because Accounts Payable was unable to determine where they belonged.