Refund Part Payment – Leaving the invoice as paid

This guidance shows you how to refund an invoice payment but leave the invoice as paid. This can be used if the customer cancels their order entirely and wants their money back.

Creating the Credit Note

To start, go to Invoices > Select the invoice > Click the Refund button within the Payments section at the bottom and select the second option: Create a credit note > I’ve paid the refund.

Using the payment details section at the bottom, enter in:

• Date – The date the money left your bank account.
• Refund – This is the amount that you refunded to the customer. By default, this is the full amount of the invoice. To change this, enter in the amount you have paid back to the customer.
• Account – Using the dropdown, select which account the refunded amount was paid out from.
• Method – Using the dropdown, select which method was used to refund the customer.
• Note – You can use the text box here to type in a reference for the refund; for example, the date you posted the cheque to the customer.

When you’re ready, click the Create button.

Issuing the Refund

You will then be taken to the credit note which has each line item as a negative.

The credit note will be partially paid because you have only given the customer some of the money back from their original invoice.

If this is the only refund you’ll be issuing, click Edit in the top right of the screen and modify the line item total so that it matches the total refunded amount, then press Save.

If you are going to refund the full value of the invoice at a later date, you can add the payment using the payment details section at the bottom of the credit note:

• Date – The date the money left your bank account.
• Refund – This is the amount that you refunded to the customer. By default, this is the full amount of the invoice. To change this, enter in the amount you have paid back to the customer.
• Account – Using the dropdown, select which account the refunded amount was paid out from.
• Method – Using the dropdown, select which method was used to refund the customer.
• Note – You can use the text box here to type in a reference for the refund; for example, the date you posted the cheque to the customer.

When you’re ready, click the Create button.