Refunding All or Part of an Allocated Payment
To maintain a proper accounting audit trail, do not modify or delete the original invoice or payment when issuing a refund for an allocated payment. Keep the original records unchanged and use the following two-step workflow:
Issue a Credit Note: Create a credit note equal to the specific amount you intend to refund.
Refund the Credit Note: Record the refund against that credit note to balance the client's account.
Step 1 - Creating the Credit Note
The process for creating a credit note is identical for both full and partial refunds.
Click on "Billing" and then click on "Issue Credit Note".
Select the client in the "Customer" field.
Choose your line item type based on the refund reason:
For Lessons or General Credit: Use the "Add Charge" option, enter the credit amount, and input the refund reason in the description field.
For Packages: Use the "Add Charge" option to reduce the dollar amount owed without altering the client's prepaid package hours. Use the "Add Package" option if you explicitly want to reduce the actual number of hours remaining in the client's package balance alongside the financial refund.
Step 2 - Refunding the Credit Note
Once the credit note is created, you'll need to refund the credit note. This can be done by following the steps below:
Click on "Billing" and then click on "Invoices".
Enter the credit note number in the "Search" field and press Enter.
Click on the "View" button to view the Credit Note.
Scroll down to the "Issue Refund" form at the bottom of the Credit Note.
Enter the refund details and click on the "Record Refund" button.
Unallocating & Refunding a Payment
In the scenario that an invoice was created mistakenly or you are refunding an allocated payment but the invoice will still need to be paid in the future, you'll want to unallocate the payment, record a refund (and if the invoice will not be paid in the future, void the invoice).
Step 1 - Unallocating the Payment
Click on "Billing" and then click on "Invoices".
View the Invoice you'll be refunding and voiding by clicking on the "View" icon.
Unallocate the invoice by clicking the "X" icon next to the payment(s) on the invoice.
Step 2 - Refund the Payment
Click on "Billing" and then click on "Payments".
View the Payment(s) you need to refund by clicking on the "View" icon.
Click on "More" at the top-right and select the "Refund" option.
NOTE: The "Refund" option will only be available after the payment has been unallocated from the invoice.
Step 3 - Voiding the Invoice
If the invoice will not need to be paid in the future, you can void the invoice by following these steps:
Click on "Billing" and then click on "Invoices".
View the Invoice you need to refund by clicking on the "View" icon.
Click on "Invoice Options" and select "Void".