If the credit card info box says Powered by Stripe Please see 
Stripe Processing Invoicing, Sales, and Refunds
If Not Please continue with the below article. 


In order to know what transaction and procedure to use to issue a refund to your customer, you should check your customer’s account balance on the Customers/Clients page (based on your version). Once you know a refund is required, choose the appropriate option below.

To go to Customer page:

  1. Select Sales from the left menu.
  2. Select Customers at the top.

Check/cheque or cash refund

I need to do a Refund by Credit Card

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Check/Cheque or cash refund

If the customer's account balance is negative or too low compared to what they actually owe you, an overpayment has been received without a matching invoice. The transaction to use would be Check/Cheque or Expense if cash is returned.

  1. Choose the "+" symbol at the top > Check/Cheque.
  2. Enter all check/cheque information: the Payee must have the Customer (or Client, etc.) name selected.
  3. On the Account Details drop down list, select Accounts Receivable and from the Customer column select the appropriate customer name. The Customer column will only be available if you're using billable expenses.
  4. Click Save.

If the previous steps leave transactions open on accounts receivable reports follow these steps to correct the situation:

  1. Choose the "+" symbol at the top > Receive Payment.
  2. Select the Customer name.
  3. Leave all fields blank on the form.
  4. Under Credits, click on the check box for the overpayment. 
  5. Under Outstanding Transactions, check the box for the Check/Cheque you just created.
  6. Click Save.

The same steps apply if you are using Expense from the "+" drop-down menu.

 

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Refund By Credit Card

If you are required to refund by credit card in this situation, you must use the Refund Receipt.

  1. Choose the "+" symbol at the top > Refund Receipt.
  2. Select the customer, then select a product/service item that reports to the main income account. Enter the Amount as a positive number.
  3. Enter all other information and click Save.
  4. To correct the customer account, enter an invoice for the same amount using the same product service item that was used on the Refund Receipt. Or, if this is undesirable, create a Journal Entry that Credits the income account that is linked the product service item on the refund receipt uses and Debits Accounts Receivable using the customer name in the name column.

The previous steps will leave transactions open on accounts receivable reports. To correct this:

  1. Choose the "+" symbol at the top > Receive Payment.
  2. Select the Customer name.
  3. Leave all fields blank on the form.
  4. Under Credits, click on the plus box to see the actual entries.
  5. The transactions should automatically be checked at the left. If not, click on the box at the left of the transactions that should be applied to each other.
  6. Click Save.

Note: If you owe your customer a refund, and their account balance is zero: Follow the steps listed above for entering a Refund Receipt, except in this case you should use Product service items and amounts that match the amount the customer was overbilled  This will work correctly for checks/cheques, cash and credit cards. Using Receive Payment is not needed after this entry.

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