Summary
Description
You may need to record a refund paid to a customer. This could be because the customer overpaid or they when they have returned some goods.
Resolution
How this works
- If you import bank transactions from a bank feed or from your bank statement, you can only match the refund to an existing credit note
- If you have already received the credit note, then enter the refund and match it to the credit note
- If the refund is to repay an overpayment saved as a payment on account, enter the refund and match to the payment on account
- If you have received a refund for a cash sales where you don't have an invoice or credit note, use the Refund for sales option. Read more about this by visiting our Enter money out as a cash refund article
- If you use the Cash Basis scheme, the refund shows on your next VAT return
Match a refund from a bank feed
Enter the refund and match it to a payment or credit note
Follow these steps to refund a payment or credit note that you have already received.
- From Banking, open the correct bank account
- Select New Entry, then Purchase / Payment
- Select the Customer Refund tab. Enter the customer, bank account, payment method, date and amount of the refund. If required, you can also enter a reference
- Select the check box next to the credit note or payment on account that the refund is for. You cannot refund part of a payment on account or credit note from here
- Save the refund
- To print a remittance advice for your refund, select Print Remittance from the Save drop-down list. The remittance advice opens in a new window. You can print or save it from here
To email a remittance advice for your refund, select Email Remittance from the Save drop-down list. Enter the email address you want to send the PDF attachment to, then select Send.
To save the refund without a remittance, select Save.
To add another refund without first creating a remittance advice, select Add Another from the Save drop-down list.
Partial refunds
If you have only received part of the value of an invoice
- Match or allocate any the payment on account or credit note to the correct invoice. This leaves an outstanding value on the invoice
- Open the invoice and refund the remaining invoice value
Read about how to match payments on account or credit notes to invoices by looking at Allocating existing transactions