If the original premium payment was received by BACS and reconciled through Digit, any refund should also be processed through Digit.

Do not create a manual refund on the policy's Money tab.

The only time a manual refund should be recorded on the Money tab is when the original payment was taken through SagePay/Opayo and the refund needs to be returned to the original card payment.

When does this apply?

Use this process when:

• The original premium was paid by BACS.
• The payment was created and reconciled in Digit.
• A cancellation or other transaction has resulted in money being owed back to the client.

How to identify how the original payment was recorded

You can determine how the payment entered the system by checking the payment type.

• Payments created in Digit will display the payment method that was selected during reconciliation (for example, BACS).
• Payments manually added via the Money tab will show the payment type as N/A.

This is a useful way to confirm whether the refund should be processed in Digit or via the Money tab.

Step 1 – Create the cancellation

Create the cancellation MTA as normal.

Once the cancellation has been processed, Digit automatically creates the corresponding Accounts Receivable entry for the refund.

The policy may now show as overpaid, indicating that money is due back to the client.

Step 2 – Refund the client

Refund the client outside of SchemeServe using your normal banking process (for example, a BACS payment).

Once the refund appears on your bank statement:

1. Open Digit.
2. Go to Bank Accounts.
3. Record the outgoing payment (Money Out).
4. Reconcile the bank transaction against the refund entry in the Accounts Receivable ledger.

Step 3 – Verify the policy

After reconciliation:

• The refund will automatically appear on the policy's Money tab as a PremiumPaidToSite event.
• The policy payment status will update to show that it is paid up to date.
• No further action is required.

Important

Do not manually create a refund entry on the policy's Money tab.

When Digit is managing the transaction, the reconciliation process automatically updates the policy record.

Creating an additional manual refund will duplicate the transaction and cause the policy's financial records to become incorrect.

Example

In this example:

1. A BACS payment was received and reconciled against the First Premium.
2. A cancellation MTA was processed.
3. The policy showed an overpayment of £39.10.
4. A Money Out transaction for £39.10 was recorded in Bank Accounts.
5. The payment was reconciled to the Accounts Receivable ledger entry.
6. The policy then showed as paid up to date, and the Money tab displayed the PremiumPaidToSite refund event automatically.

This demonstrates the complete refund workflow when the original premium was received through Digit via BACS.