Customer refunds

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

help! im stuck

When you input the transaction into your bank on QuickFile, you will be able to tag it. Simply select the ‘refund to a customer’ option:

Type in the client’s name and it will show a list of invoices:

Simply select the transaction from the list, and it will sort the rest!

Edit

Would just like to add that when you’ve tagged it, it will show on the original invoice:

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thank you i originally had did it slightly different!

i bumped the invoice up to £70 and it worked

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.

When you refund or credit an invoice, it effectively lowers the total amount for the invoice.

So, in your example:
Total Invoice Values - £70.00
Refund - £8.80
New Invoice Total - £61.20

Therefore, if the amount paid is also £70 minus the refund of £8.80, the new invoice total would be £61.20 and it would still balance.

OK, I suppose technically refund and credit are different. I was maybe making the assumption that they weren’t, or vice versa.

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