Enter a Refund
Before you process a refund, write a cheque by hand or enter a negative entry in your daily deposit slip for the refund amount.
Select a task based on the method of payment for a refund:
- Create a new sales invoice. How?
- In the Home window, click Customers & Sales on the navigation pane.
- In the Tasks pane, right-click the Sales Invoices icon and select Create Invoice from the menu.
- In the Payment Method box, select Cash, as on the original invoice.
- Select or enter the customer name in the Customer box.
- In the Invoice No. box, enter R (for refund) and then the original invoice number. This identifier will help you when you reconcile your Bank account.
- In the Date box, accept the system date. Do not use the date of the original invoice unless the goods or services were refunded that day.
- The next step depends on the type of item being returned or the type of service being refunded:
- Enter the item number.
- In the Quantity box, enter a quantity, preceded by a minus sign.
- In the Quantity box, enter a quantity, preceded by a minus sign.
- Enter a description of the item in the Description box.
- In the Account box, select the expense account you use for writing off inventory and services, such as Adjustment Write-off.
- In the Quantity box, enter a quantity, preceded by a minus sign.
- Enter a description of the item in the Description box.
- In the Account box, select the expense account you use for writing off inventory, such as Adjustment Write-off.
- Select the tax code you used for the original invoice.
- If the original transaction included allocations to projects, click the Project Allocation button , and enter the project and the amount or percent to allocate. Then click OK to return to the invoice screen.
- In the Comments box, describe the reason for the refund.
- In the Terms box, remove any payment terms.
- Click Print & Process. to update the accounts and print the refund slip. Have the customer sign the refund slip, and keep it for your records.
Note: For inventory items, this transaction increases the inventory asset account, and decreases the Accounts Receivable, Cost of Goods Sold, and revenue accounts. For non-inventory or service items, the program decreases Accounts Receivable and the revenue account you specified.
- Create a new sales invoice. How?
- In the Home window, click Customers & Sales on the navigation pane.
- In the Tasks pane, right-click the Sales Invoices icon and select Create Invoice from the menu.
- In the Payment Method box, select Cheque, as on the original invoice.
- Select or enter the customer name in the Customer box.
- In the Invoice No. box, enter the number of the cheque that you have prepared for the customer.
- In the Date box, accept the system date. Do not use the date of the original invoice unless the goods or services were refunded that day.
- The next step depends on the type of item being returned or the type of service being refunded:
- Enter the item number.
- In the Quantity box, enter a quantity, preceded by a minus sign.
- In the Quantity box, enter a quantity, preceded by a minus sign.
- Enter a description of the item in the Description box.
- In the Account box, select the expense account you use for writing off inventory and services, such as Adjustment Write-off.
- In the Quantity box, enter a quantity, preceded by a minus sign.
- Enter a description of the item in the Description box.
- In the Account box, select the expense account you use for writing off inventory, such as Adjustment Write-off.
- Select the tax code you used for the original invoice.
- If the original transaction included allocations to projects, click the Project Allocation button , and enter the project and the amount or percent to allocate. Then click OK to return to the invoice screen.
- In the Comments box, describe the reason for the refund.
- In the Terms box, remove any payment terms.
- Click Process to update the accounts.
Note: For inventory items, this transaction increases the inventory asset account, and decreases the Accounts Receivable, Cost of Goods Sold, and revenue accounts. For non-inventory or service items, the program decreases Accounts Receivable and the revenue account you specified.
- Create a new sales invoice. How?
- In the Home window, click Customers & Sales on the navigation pane.
- In the Tasks pane, right-click the Sales Invoices icon and select Create Invoice from the menu.
- In the Payment Method box, select the credit card that was used in the original invoice.
- Select or enter the customer name in the Customer box.
- In the Invoice No. box, enter R (for refund) and then the original invoice number. This identifier will help you when you reconcile your Bank account.
- In the Date box, accept the system date. Do not use the date of the original invoice unless the goods or services were refunded that day.
- The next step depends on the type of item being returned or the type of service being refunded:
- Enter the item number.
- In the Quantity box, enter a quantity, preceded by a minus sign.
- In the Quantity box, enter a quantity, preceded by a minus sign.
- Enter a description of the item in the Description box.
- In the Account box, select the expense account you use for writing off inventory and services, such as Adjustment Write-off.
- In the Quantity box, enter a quantity, preceded by a minus sign.
- Enter a description of the item in the Description box.
- In the Account box, select the expense account you use for writing off inventory, such as Adjustment Write-off.
- Select the tax code you used for the original invoice.
- If the original transaction included allocations to projects, click the Project Allocation button , and enter the project and the amount or percent to allocate. Then click OK to return to the invoice screen.
- In the Comments box, describe the reason for the refund.
- In the Terms box, remove any payment terms.
- (Optional) If you have set up a merchant account, click the Process Credit Card button. Click Refund to verify the credit card information, and then click OK.
- Click Process to update the accounts.
Note: For inventory items, this transaction increases the inventory asset account, and decreases the Accounts Receivable, Cost of Goods Sold, and revenue accounts. For non-inventory or service items, the program decreases Accounts Receivable and the revenue account you specified.