This guidance shows you how to refund a payment against an invoice but leave the invoice as paid. This can be used if the customer cancels their order entirely with you and would like their money back.
Creating the Refund
To refund a fully paid invoice go to Sales > Select the fully paid invoice > Click the Refund button at the bottom. Using the three options, select the second one, Create a credit note for this invoice, then using the next options select Add a payment to the credit note. I will provide payment details below. Then, using the refund payment details section at the bottom enter:
- Date – The date the money left your bank account to give the customer their money back.
- Amount refunded – This is the amount that you refunded to this customer. By default this is the full amount of the invoice.
- Account/Method – Using the drop down box select which account the refunded amount has been paid out from, and the method that you refunded the customer.
- Note – You can use the text box here to enter in a note about the refund, for example the date you posted the cheque to the customer.
When you’re ready, click the Refund button. You are then taken to the credit note, which has each line item against it as a negative and also a negative payment.