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!


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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