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