When processing a refund, it’s important to choose whether the refunded amount should be applied back to the invoice as a discount. This determines whether the customer will still show a balance after the refund is processed.
How to Process a Refund
Go to the customer’s account.
Select History.
Select Payment History.
Find and select the payment/invoice you want to refund.
Click Refund.
A pop-up will appear with the option to apply the refunded amount back as a discount to zero out the invoice.
If the Customer Does NOT Owe the Refunded Amount
Check the box to apply the amount back as a discount.
This will apply a discount to the invoice for the refunded amount so the customer does not have an outstanding balance after the refund.
Example:
A customer paid a $100 invoice and you refund the full $100. If the customer no longer owes that $100, check the box. The refund will be processed and the invoice will be zeroed out.
If the Customer Still Owes the Balance
Leave the box unchecked.
This will process the refund but return the refunded amount to the invoice as an outstanding balance.
Example:
A customer paid a $100 invoice and you refund the payment because you need them to repay the invoice using a different payment method. Leave the box unchecked. The $100 will return as a balance due on the invoice.
What If the Refund Was Already Processed Incorrectly?
If the refund was processed without checking the box to apply the refunded amount back as a discount, but the customer does not owe the balance, you can correct the invoice by following these steps:
Go to the customer’s account.
Go to Upcoming Invoices and locate the invoice where the refunded amount is now showing as due.
Open the invoice and add a line item.
Apply a 100% discount to the line item.
This will zero out the invoice and correct the balance.
Once the 100% discount is applied, the invoice will show a $0.00 balance, and the customer will no longer show as owing the refunded amount.