Refund Part Payment - Leaving the Invoice as Paid

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

Creating The Credit Note

To refund a fully paid invoice go to Sales > Select the invoice > Click the Refund button at the bottom.  Using the three options, select the second one, Create a credit note for this invoice, then using the next options select Add a payment to the credit note.  I will provide payment details below.  Then, using the refund payment details section at the bottom enter:

  • Date – The date the money left your bank account to give the customer their money back.
  • Amount refunded – This is the amount that you refunded to this customer. By default this is the full amount of the invoice.  To change this click in the box and enter in the amount you have paid back to the customer.
  • Account/Method – Using the drop down box select which account the refunded amount has been paid out from, and the method that you refunded the customer.
  • Note – You can use the text box here to enter in a note about the refund, for example the date you posted the cheque to the customer.

When you’re ready, click the Refund button.

Issuing the Refund

You are then taken to the credit note, which has each line item against it as a negative and also a negative payment.  This credit note will only 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 for this invoice, just click Edit next to the line item and modify the total to be the total amount that you have refunded.  If you are going to refund the full value of the invoice at a later date; you can add the payment that you make to the customer using the payment details section at the bottom of the credit note:

  • Date – The date the money left your bank account to give the customer their money back.
  • Amount refunded – This is the amount that you refunded to this customer.  By default this is the full amount of the invoice. To change this click in the box and enter in the amount you have paid back to the customer.
  • Account/Method – Using the drop down box select which account the refunded amount has been paid out from, and the method that you refunded the customer.
  • Note – You can use the text box here to enter in a note about the refund, for example the date you posted the cheque to the customer.

When you’re ready, click the Add Payment button.

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