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:

  1. Create a new sales invoice.
    1. In the Home window, click Customers & Sales on the navigation pane.
    2. In the Tasks pane, right-click the Sales Invoices icon and select Invoice, and then select Create Invoice from the menu.
  2. In the Payment Method box, select Cash, as on the original invoice.
  3. Select or enter the customer name in the Customer box.
  4. 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.
  5. 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.
  6. The next step depends on the type of item being returned or the type of service being refunded:
    1. Enter the item number.
    2. In the Quantity box, enter a quantity, preceded by a minus sign.
    1. In the Quantity box, enter a quantity, preceded by a minus sign.
    2. Enter a description of the item in the Description box.
    3. In the Account box, select the expense account you use for writing off inventory and services, such as Adjustment Write-off.
    1. In the Quantity box, enter a quantity, preceded by a minus sign.
    2. Enter a description of the item in the Description box.
    3. In the Account box, select the expense account you use for writing off inventory, such as Adjustment Write-off.
  7. Select the tax code you used for the original invoice.
  8. If the original transaction included allocations to projects, click the Project Allocation button Project Allocation button, and enter the project and the amount or percent to allocate. Then click OK to return to the invoice screen.
  9. In the Comments box, describe the reason for the refund.
  10. In the Terms box, remove any payment terms.
  11. 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.

    12. 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.

  1. Create a new sales invoice.
    1. In the Home window, click Customers & Sales on the navigation pane.
    2. In the Tasks pane, right-click the Sales Invoices icon and select Invoice, and then select Create Invoice from the menu.
  2. In the Payment Method box, select Cheque, as on the original invoice.
  3. Select or enter the customer name in the Customer box.
  4. In the Invoice No. box, enter the number of the cheque that you have prepared for the customer.
  5. 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.
  6. The next step depends on the type of item being returned or the type of service being refunded:
    1. Enter the item number.
    2. In the Quantity box, enter a quantity, preceded by a minus sign.
    1. In the Quantity box, enter a quantity, preceded by a minus sign.
    2. Enter a description of the item in the Description box.
    3. In the Account box, select the expense account you use for writing off inventory and services, such as Adjustment Write-off.
    1. In the Quantity box, enter a quantity, preceded by a minus sign.
    2. Enter a description of the item in the Description box.
    3. In the Account box, select the expense account you use for writing off inventory, such as Adjustment Write-off.
  7. Select the tax code you used for the original invoice.
  8. If the original transaction included allocations to projects, click the Project Allocation button Project Allocation button, and enter the project and the amount or percent to allocate. Then click OK to return to the invoice screen.
  9. In the Comments box, describe the reason for the refund.
  10. In the Terms box, remove any payment terms.
  11. Click Process to update the accounts.

    12. 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.

  1. Create a new sales invoice.
    1. In the Home window, click Customers & Sales on the navigation pane.
    2. In the Tasks pane, right-click the Sales Invoices icon and select Invoice, and then select Create Invoice from the menu.
  2. In the Payment Method box, select the credit card that was used in the original invoice.
  3. Select or enter the customer name in the Customer box.
  4. 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.
  5. 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.
  6. The next step depends on the type of item being returned or the type of service being refunded:
    1. Enter the item number.
    2. In the Quantity box, enter a quantity, preceded by a minus sign.
    1. In the Quantity box, enter a quantity, preceded by a minus sign.
    2. Enter a description of the item in the Description box.
    3. In the Account box, select the expense account you use for writing off inventory and services, such as Adjustment Write-off.
    1. In the Quantity box, enter a quantity, preceded by a minus sign.
    2. Enter a description of the item in the Description box.
    3. In the Account box, select the expense account you use for writing off inventory, such as Adjustment Write-off.
  7. Select the tax code you used for the original invoice.
  8. If the original transaction included allocations to projects, click the Project Allocation button Project Allocation button, and enter the project and the amount or percent to allocate. Then click OK to return to the invoice screen.
  9. In the Comments box, describe the reason for the refund.
  10. In the Terms box, remove any payment terms.
  11. (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.
  12. Click Process to update the accounts.

    13. 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.