How to Pay a Customer Refund

Note: Before issuing a refund, you must first create a credit note for the customer.

To record a refund payment to a customer, click File > New > Money Paid Out. The Money Paid Out window will appear:

Customer Refund

Enter the details into the following fields:

  • Paid To: Enter the customer name. Note that after you enter a customer name (rather than a supplier name) the Type drop-down box changes to 'Customer Refund'.

  • Date: The date you paid the refund.

  • Amount Paid: The amount of money you paid to your customer.

  • Paid From Account: This is the account the money comes from. Usually this is a bank account such as 'Cheque Account' or 'Mastercard'.

  • ID: A unique number for this payment.

  • Journal Memo: A description of this transaction for your records.

  • Type: This is the type of payment. For a refund select 'Customer Refund'.

  • Credits to Settle: Tick the credit note to settle. See How To Credit a Customer Account for more information on creating credit notes.

  • Total Credit Amount Settled: This is the total of the 'This Payment' column and must match the 'Amount Paid' field.

Click 'OK' to save the refund payment. The new transaction will appear in the Transactions list (menu Window > Transactions).