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 Refund
To refund a fully paid invoice, go to Invoices > Select the invoice > Click Refund within the Payments section at the bottom.
You then need to click the second option Create a credit note > I’ve paid the refund in the popup.
Using the refund 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.
- 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.
You will be taken to the credit note where each line item will be displayed as a negative. Both the credit note and original invoice will be marked as paid.