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.