This guidance shows you how to refund an invoice payment and leave the invoice as unpaid. This can be used if the customer cancels their order entirely with you and would like their money back.
Issuing the Refund
To start, go to Invoices > Select the invoice > Click the Refund button within the Payments section at the bottom.
You then need to click the first option Refund Payment(s) in the popup and use the payment details section at the bottom to enter in:
- Date – The date the money left your bank account.
- Amount – This is the amount that you refunded to the customer. By default, this is the full amount of the invoice.
- 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 Refund button.
A negative entry with the refunded amount will be added to the Payments section of the invoice. It will now be marked as unpaid.