Issue a refund

You can issue a customer refund for a payment, prepayment, or credit note by using the Customer payments (AR302000) window.

A customer refund is used when the company needs to return money to a customer, such as when the customer overpays or returns an item.

Before you proceed

You can issue a refund for a document with an Open status; thus, you should make sure the document for which you want to issue a refund has this status.

If the document status is Closed, reverse the document applications and release the reversed application records.
After the reversal, you can issue a customer refund for the document. For more information, see Correct an application record.

1. Go to the Customer payments (AR302000) window.
2. In the window toolbar, click .
3. In the Type field of the top part, select Customer refund.
4. Check the date of the customer refund in the Payment date field on the Financial details tab.

   This field is filled in automatically based on the current date, but you can select another date.

5. Check the date of the application records in the Application date field.

   This field is filled in automatically, based on the selected document date.
   By default, the current date is selected, but you can select another date.

6. In the Customer field, select the customer you want to refund.
7. In the Location field, select a different customer location than the default one, if required.
8. Make sure the document currency is the one you need, and change it if necessary.

   The currency may be overridden only if the Allow currency override check box is selected for the customer in the Customers (AR303000) window.

   In the Payment method field, select the payment method that can be used for refunds.
   Make sure you do not select the payment method associated with the clearing account that is used to hold customers' undeposited payments.
   You cannot select a payment method that is used for payment via AutoPay (the check box Create batch payment (customer and supplier ledgers) cannot be selected for the payment method in the Payment methods (CA204000) window).
9. In the Payment ref. field, enter the payment reference number.
10. Optional: Enter a description of the refund.
11. On the Documents to apply tab, enter the credit notes, prepayments, or payments for which you are issuing the customer refund, performing the steps below for each refunded document:
    1. Click Add row on the table toolbar to append a new row to the table.
    2. In the Document type column, select Credit note, Payment, or Prepayment, depending on the document for which the customer refund is issued.
    3. In the Reference no. column, select the document you want to refund.
    4. Optional: In the Amount paid column, correct the refund amount to be paid for the document.
12. In the Payment amount field of the top part, enter the total amount of the refund.
13. Prepare the customer refund for further processing in accordance with your company policies by doing one of the following:
    • To save the refund with the On hold status, make sure the Hold check box is selected.
    • To save the refund with the Balanced status, make sure the Hold check box is cleared.
14. In the window toolbar, click .
15. Optional: If the refund has the Balanced status, click Release to release the customer refund and its application records.