Overview
When your client receives a refund from a supplier, you need to update the supplier invoice to reflect the refund for your client's clarity. To do this, you can add a custom refund item to the top of the invoice with a negative price, and a note explaining the reason for the refund.
Then, you can add a negative payment for the same amount as the refund to the payment schedule and mark it as paid. This process ensures that your client is properly informed and the invoice accurately reflects the refund received from the supplier.
How to show a refund on a Supplier invoice
π‘ Refunds on a supplier invoice are handled differently than direct invoice refunds and are designed to keep your client properly informed. To request a refund on a direct invoice, visit this guide. |
Once a client's payment is refunded, it is important to note this on the invoice for clarity. This involves two steps:
Add a refund item
First, you'll want to add a new item to the top of the invoice. To do this, click "+ Add item", and customize βthe line item to reflect the refunded amount:
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You'll notice the unit cost has been set to a negative amount, -$450, to reflect that this is a refund.
You can also include the word "refund" in the item name or even use the description box to describe the refund in detail for further clarity.
Add a negative payment to the payment schedule
Next, you'll need to correct the payment schedule to reflect the new total. You can do this by adding a payment for the same amount as the refund (-$450) and marking it as paid:
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Notice that the description was changed from "payment" to "refund" for clarity. Marking the payment as paid will give you the option to send the client a refund receipt, which is optional. Once you've done so, you can click Next -> Save in the top right-hand corner to save the updated version of the invoice, including the refund.
Comments
2 comments
This was so helpful!! Thank you so much. Now is it best to archive the trip? I have a client that only paid a deposit and had to cancel. Supplier refunded the money, but I still have their payment plan set up. I don't want the system to still send them payment reminders.
How do you show a refund for one payment if there are multiple ones.
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