There are a few situations in which a refund may need to be issued to a customer. The first is due to an overpayment made by the customer, which will show up as a negative balance under the customer account. The second is when a customer has paid the invoice correctly and a refund is required on certain services; in this case, a credit note or adjustment invoice will need to be created (refer to Create a Credit Note or Adjustment) for more information). Both scenarios can be resolved using the same process, which is outlined below.

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How to Issue a Refund

1. Enter a negative balance into the Local Value and apply it to the negative balances. This will record an amount leaving the bank account. 

In the situation where a cheque needs to be printed in Moveware or a bank payment using a Moveware export is required, the refund must be issued from the supplier side. This will require creating a supplier version of the customer (if it does not already exist) and the use of a clearing account to transfer the balance from the Customer Account to the Supplier Account: 

2. Record a negative receipt to the Clearing Account as the first step. Creating this entry will create a journal with the following structure: 

Dr Accounts Receivable X.XX 

Cr Clearing Account X.XX 

3. Next, create a negative payment made from the clearing account to the supplier version of the customer (Refer to Enter a Payment): 

This will create a journal entry with the following structure: 

Dr Clearing Account X.XX 

Cr Accounts Payable X.XX 

This effectively creates a payable amount in the Supplier Account. This amount may now be paid using standard payments, allowing for either a cheque to be printed, or to export the payment to the bank as necessary (Refer to Enter a Payment). 

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