How to record customer refunds
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Refund Options

  • Post a refund from the Banking page or directly within a credit note.
  • Refund payments on account only through Banking.
  • Generate a remittance advice when recording refunds through Banking.
     NOTE: You cannot issue refunds by creating invoices with negative amounts

Refunding Allocated Transactions

To refund a credit note or receipt allocated to an invoice:

  1. Create a stand-alone credit note and refund it.
  2. Unallocate the invoice and receipt or credit note. This makes the invoice outstanding and the receipt a payment on account or a stand-alone credit note. Use this method only if the customer plans to repay the invoice later.

Cheque Printing

If check printing is set up, print checks from the Cheque Register. For setup and management, see:

To post a customer refund from Banking

  1. Go to Banking and select the appropriate bank account.
  2. From the New Entry menu, click Expense/Payment.
  3. Click the Customer Refund tab and complete the required fields:
    Customer * Enter the company name or reference.
    Paid from Bank Account Confirm or select the correct account.
    Method *

    Choose the payment method.

    Date Refunded * Enter the refund date.
    Amount Refunded * Enter the total refund amount.
    Your reference (optional) Add a reference if needed.

    * Indicates a required field.


     NOTE: If you select Cheque, also select a vendor so the transaction appears in the Cheque Register. 
  4. Select the credit note or payment on account to refund.
     NOTE: You cannot refund part of a credit note or payment on account. Allocate the necessary amount to an invoice first, then refund the remaining balance. 

     

     

     

  5. Choose one of the following:
    • Click Print Remittance from the Save menu to generate a remittance advice
    • Click Expense/Payment to add another refund
    • Click Save to complete the refund
  6.  

    The system updates the bank and customer account balances.

To post a customer refund from within a credit note

  1. Go to Sales, and then Sales Credit Notes.

     

  2. Click the applicable credit note.

     

  3. Click Process Refund and enter the following information. Fields with an asterisk (*) are required.

    Amount Refunded * This is the full credit note value and cannot be changed.
    Paid from Bank Account * Select the refund account.
    Method * Choose the payment method.

     NOTE: If you select Cheque, also select a vendor so the transaction appears in the Cheque Register.

    Date Refunded * Enter the refund date.
    Your Reference (optional) Add a reference if needed.
  4. Click Save. The credit note now shows as paid.

Refund a Receipt from a Sales Invoice

  1. Go to Sales and open the sales invoice.
  2. Click the payment link above the Record Payment button.
  3. In the Payments and Allocations window, click the pencil icon in the Refund column.
  4. In the Amend Customer Receipt window, enter the refund date, bank account, and reference.
  5. Click Save.
    • If only one payment exists, the invoice becomes Outstanding
    • If multiple payments exist, the invoice becomes Part Paid

     

  6. To cancel the invoice or part of it, create a sales credit note.

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