You now have the ability to refund settled Payments for full or partial amounts within Service Autopilot if your processor is either CardConnect or OpenEdge.
Note: If you sync with QuickBooks Online, the refund process is different than shown in this article.
Creating a Refund
The overlay shown for Over Payments is the same as Full/Invoiced Refunds. The only difference is that this refund type is used to account for Payments where the paid amount exceeds the cost of the service.
You'll see no line items, nor would you need to add any since there isn't any sales tax to account for.
Note: Fully allocated and fully un-allocated Payments will default to this type.
When refunding a partially allocated Payment, the system will prompt you to choose the type of Refund. Use Full/Invoiced for scenarios where there is sales tax that needs to be accounted for.
Once you've selected your refund type, the following overlay will appear:
From here you can edit the information, if necessary. Once you're done reviewing the information, click Save. A banner will now appear on the payment as well as the amount refunded.
To compensate for sales tax and to offset your Client's balance, there are three transaction types that will be automatically created when refunding:
Payment Refund: This is a refund transaction that is used to offset any over-payment amount from the Client’s balance. The Payment has to have an unused amount greater than zero for this transaction type to be created. Note: Payment Refund Total = (Refund Amount - Amount Applied).
Payment Credit: This is a credit memo transaction that is used to track refunded service amount based on the Payment allocation to Invoices. It is also used to offset sales tax on the Sales Tax Liability report, based on the refund date. When refunding a Payment, this will be created automatically if the Payment has been applied.
Credit Refund: This is a refund transaction that is used to offset the Payment Credit. Since any allocated payment amount is already removed from the Client’s balance, you don’t want that removed a second time. A Credit Refund’s total will always be the same as the Payment Credit it was created with. This transaction will automatically be created when a Payment Credit is created.
General Refund Information
In order to preserve the integrity of your bookkeeping, you cannot delete refunds. You can delete the original Payment. This does not change the fact that the Payment was both made and refunded. This practice is generally not advised but if a Payment must be deleted, you can do this from either the Payments screen (Actions > Delete) or from the Client Account 's "All Transactions" dialog.
When deleting a Payment from the Payments List, there is a column that displays the Refunded Amount.
If the Payment has not been settled you'll see a Void button where the Refund button would be.
Note: If you have changed credit card processors: You will only see the Refund button and/or be able to refund money from payments that were made with your current CC processor.
Use Case #1
You need to Refund a Payment but will still collect on the Invoice.
First make sure that the Payment is completely un-allocated from the Invoice:
If you need to un-allocate, do so and then click Refund.
The Refund type will default to Overpayment and no line items will be displayed because the payment is fully un-applied. The Add Refund overlay will appear and from here you can edit the refund amount or reference/memo sections. Once finished, click Save.
A Payment Refund was created to offset the original Payment amount, you should see an open balance on the Invoice.
Use Case #2
You need to refund the full amount of a Payment and will not collect on the Invoice.
In this use case we need to account for any sales tax that is owed and offset the balance of the Payment and Invoice. Start by making sure the Payment is fully allocated to the Invoice.
Allocate if needed then click Refund.
The line items shown on the Add Refund overlay pull from the Invoice the Payment is allocated to. The total is proportional to the amount that is applied. Make any necessary changes and click Save.
You'll see that a Credit Refund and Payment Credit were created to offset the balance and sales tax, respectively.