Partial refund and Hold funds on client account

Hi all,

Let’s say I invoice a client £100 for job 1, and then £25 for job 2.

I then refund the client for job 1, but instead of refunding the full amount, I refund £75, keeping £25 to pay for job 2.

I’ve tagged the outgoing £75 as a refund against job 1.

I’m not sure how to deal with the invoice for job 2. I clicked on ‘log payment’ but in the ‘paid to’ dropdown I don’t see an appropriate selection (‘paid to current account’) seems the right one, but I don’t know if selecting that will create a new payment ‘in’, in the current account screen.

Any advise is much appreciated!

It sounds like you have only done a partial refund on invoice 1. I think you will need to refund the other £25 on that invoice and hold it on the client account. You can then use this balance to pay invoice 2.


Thanks @Lurch

Actually (unless I’ve missed your point) invoice 2 (£25) was never pad by the client so I can’t refund it.

Yes, you have misread my post.



Hi @josegonzalezltd,

I’m working on the following assumptions:

1. You issue two separate invoices for “job 1” and “job 2”

**2.**Receive and record in the bank payment for “job 1” and tag this entry as Payment from a customer>>Matched Invoice Records>>select existing invoice for “job 1” and link it to the transaction.

3. You refund £75 and resulting bank entry tag as Refund to a customer>> Allocate to Client>>Allocate to Invoice>>select existing invoice for “job 1”>>Process Refund

4. Your Invoice Management Status shows three invoices we are interested in:

PAID £100 for “job 1”

CREDIT £75 refund for “job 1”

SENT 25 for “job 2”

At this point the treatment would be as follows:

5. View/Edit PAID £100 invoice “job 1”, from the horizontal menu select More Options>>Credit Note>> now you credit note outstanding balance of £25 and when Sending/Saving presented with “Credit Note Options” select “Hold funds on client account”:

6. View/Edit SENT £25 invoice for “job 2”, from the horizontal menu select Log Payment>>Apply from credit>>Save

Job done.

I’m not an accountant, in case of doubts seek advice from professional accountant.

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