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Locate the fully paid invoice.
Right-click on the invoice Invoice, Credit, or Payment, or use the Actions menu to select Create Credit from Invoice.
Decide whether to refund the client or keep the credit for future use.
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Refunds processed through the Create Credit from Invoice function will be reflected in financial reports as Returns and Allowances. For example, if you issued a $60,000 invoice , received full payment (including $5,400 in sales tax), and refunded it, the report will show the following:
Payment received: $65$60,400000.00
Refund issued: -$65$60,400000.00
Client credit held: $65$60,400000.00
This ensures accurate tracking of both the refunded amount and the retained client credit, maintaining clarity in your financial records.
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