The first and most important item to remember when you do a refund is to ensure you offset the refund amount by adjusting the invoice(s) the refund relates to. If you do not complete this step, and the customer pays via a Credit Card or ACH/eCheck, the system will try to capture this amount at the next billing run. See Invoice Reversal and /or Credit Notes for additional information.
There are two options for refunding money back to a customer:
It is important that the reversal be done before the refund especially if the customer grace period is strict. Refunding first may cause a customer to go into poor standing and suspend unintentionally.
- Find the invoice that you need to refund.
- Make the needed Reversal to the invoice (Reversals).
- Once the Reversals are completed, you will see there are funds in Available Funds and the balance will show that the customer has money on deposit.
- If you used the Reverse Unearned Revenue option in the Reversal process, this amount represents a number of services unused.
- If you reversed the full amount, it will display the full charge from the invoice.
- If you reversed a specific amount, this is what will be displayed.
- Once you have completed the Reversal process, you are ready to do the refund portion.
- From the invoice, click Refund.
- The Create Refund screen will open, allowing you to allocate the refund amount.
- Enter the amount to refund
- Add a reference or description of why you are refunding this amount.
- Choose the correct Refund Method. If a Credit Card or ACH had been used as the payment method, you can refund directly back to the credit card or bank account.
- Allocate the refund amount. If you already did the Reversal and the money is sitting in Available Funds, choose Unallocated.
- Click Refund. Please note that the Refund can take up to 10 business days depending on your Vendor. Usually, if the Refund takes place the same day, assuming it is refunded prior to your processor running their daily batch process, the Refund is treated more as a VOID.
- From the Customer screen, click into their Payments.
- Find the Payment entry that relates to the Payment you need to apply the Refund against. Click on Details.
- Click Refund to open the Create Refund page
- In the Amount box, enter the amount to be Refunded.
- In the Reference box, enter a description or reason for the refund. This is not mandatory but may help you remember why the refund was given at a later date.
- If the original payment is related to a single invoice, the amount entered in the Amount box should be reflected in the Refund Allocation box for the associated invoice.
- Click Create.
- If the refund is successful you will receive the following: