Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Refund Recovery Charges

Steps: Set Up Refund Recovery Charges

Financial aid awards or student sponsor contracts can reduce for various reasons. These changes can include an expected family contribution change, or financial aid eligibility changes. When the awards or contracts reduce after you issue a refund, Workday retrieves the overpaid funds through existing charges and, when necessary, a refund recovery charge. You can configure a refund recovery charge to enable Workday to recover the excess funds when the recovery amount exceeds the existing charges.
  1. Create a student charge item with a
    Type
     of
    Refund Recovery
     and associate it with an academic unit. All institutions must have charge items for refund recovery.
  2. Add the refund recovery charge to a precedence group.
  3. Configure account posting rules and dimensions for refund recovery transactions.
When you reduce amounts of financial aid or student sponsor contracts, Workday:
  1. Attempts to recover the difference through existing student charges.
  2. Applies an adjustment to the charge up to the amount that the financial aid award or student sponsor contract applied to the charge.
  3. Posts a refund recovery charge for the remainder, when the amount you need to recover exceeds what you can recover from other charges.
Workday details the refund recovery charges in the payment adjustment and not separately. You can view them on the
Payment
,
Adjustment
, or
Outstanding Charges and Payments
 tabs.
Kenny and Erin both receive 1500 USD grants, which pay off their 1000 USD tuition charges and result in 500 USD refunds. After you issue the refunds, the grant for Kenny reduces to 750 USD and for Erin reduces to 250 USD.
To recover 750 USD from Kenny and 1250 USD from Erin, Workday posts:
  • A 750 USD tuition charge adjustment to Kenny and doesn't need to post a refund recovery charge.
  • A 1000 USD tuition charge adjustment to Erin and a 250 USD refund recovery charge.
In another example, Amanda receives a 600 USD grant and a 900 USD scholarship that both go toward her 1000 USD tuition charge. After Workday issues a 500 USD refund for the scholarship, the scholarship reduces to 300 USD.
To recover 600 USD from Amanda, Workday posts a 400 USD tuition charge adjustment and a 200 USD refund recovery charge.