If you have invoiced and receipted a client for a previous sale, and subsequently need to refund them for this purchase you can follow the below steps to record this process correctly.
Create a Credit Note
Firstly, you need to issue a Credit Note to the client which effectively reduces their account balance by the amount credited.
- Locate the original invoice that you created and open it.
- Click the New Return button to create a Credit Note for the client. The items from the original invoice will be added to this Credit Note automatically.
- Adjust the line items if necessary. For instance, if you are only crediting them for 50% of the invoice, you could apply a 50% discount to the line items.
- Click Save and Close.
- You can also create a stand-alone Credit Note by browsing to Clients - Sales and clicking the New Credit button.
Create a Negative Receipt
If you previously received money from the client, and now need to pay money back to the client from your cash drawer you must record a negative receipt for this amount.
- If you recorded a Credit Note in the previous steps the New Receipt screen will have opened automatically and the Amount Due and Received amounts will already be filled in as negative amounts.
- Click Save and Close to record that you paid this money back to the client.
- You can also record a stand-along negative receipt by browsing to Clients - Receipts and clicking New Receipt. Enter the Amount Due and Received amounts as negative values and save the Receipt.