Sales invoice refunds

If you give a customer a refund for an invoice they’ve already paid, you need to record this. You can refund the payment, then issue a credit note to cancel the invoice.

This article is for the standard VAT scheme only. If you use a different VAT scheme, or to help you correct other transactions, we’ve put together a step-by-step guide.

  • 1. Sales > Sales Invoices > select the invoice you want to refund.
  • 2. Record Payment > enter the following information:
Amount Paid * Enter the amount of the refund as a negative value. This can be for all or part of the invoice.
Note: The value must be entered as a negative value. If the value is positive, it’s recorded as a payment against the invoice.
Date *  Enter the date of the refund.
Paid To * Choose the bank account you paid the refund from.
Tick if Cheque If you paid the refund by cheque, select this check box.
Ref/Chq Number Enter a reference, for example Refund, or the cheque number.

* These details are compulsory.

  • 3. Save > Manage Invoice > Create Credit Note.
  • 4. Credit Date > ensure this is the date of the refund.
  • 5. Check the information on the credit note is the same as the original invoice. If the refund is for part of the invoice value > change the unit price and check the total value is correct.
  • 6. Click Save.

You’ve successfully recorded the refund.