Invoiced a customer £70 but in my error i over charged by £8.80
customer paid by cheque so i issued a refund via BACS for difference,
the 8.80 refund is sat on my banking screen untagged but how do i tag it to a refund from the customer?
all i seem to generate is a 8.80 credit and the customers balance does not seem to change and sits at 8.80 in credit?
i just cant seem to remove this amount? should i just amend the invoice manually to 61.20 and note the refund from the bank in the journal or other catagorys? and say the customer only paid me £61.20
I’m not sure that this is right. If you have an invoice for £70, a payment for £70 and a refund for £8.80 then that would show up as a bad debt of £8.80 at the end of the year as the invoice would only have a £61.20 payment attributed to it.