Refunding payments

When a customer places a return, requests an exchange or reports a problem with their order, you may need to refund money to them.

How to refund money on a sales order

In general, if an order hasn't shipped yet, it will need to be refunded on the order itself. If excess funds have been taken in error, an item is being switched out for a cheaper one, a cheaper shipping method is being chosen, or the order total is lower than the amount paid to date for some other reason, then there is no need to create a sales credit.

1. Open the order.
2. Click Take payment.
3. Choose Reversal.

   

4. Select the date on which to record the reversal payment.
5. Enter the payment reference.
6. Enter the amount (positive value!).
7. Click Submit.

The only exception to this is when the sales order has been invoiced - the overpayment will have been accounted for already.

How to refund an invoiced overpayment

If an overpaid order is invoiced, the excess is split off from the order and created as a payment on account.

The order will then show as fully paid. If you're going to refund the payment on account (rather than leave it to allocate against a future invoice), then follow these steps:

1. Go to the payment allocation screen for that customer.
2. Choose the bank account you are refunding the money from.
3. Click the 'Pay/unpay' button next to the relevant line - it should begin with 'ovr_'.
4. Change the date and add a reference if applicable.
5. Click 'Submit'.

Read more about overpayments here.

How to enter a refund on a sales credit

If a sales credit has been created and the customer is being refunded, it is necessary to mark the credit itself as refunded.

1. Open the sales credit and click Refund.
2. Confirm that Refund is selected in the popup.

   

3. Select the date on which to record the refund.
4. Enter the payment reference.
5. Enter the amount (positive value).
6. Click Submit.