Create a Refund Invoice Template for R&D Effortlessly

Refund invoice template for R&D

what if your customer wants a refund for an  invoice that's already paid if you have any   questions about this topic you can leave them  in the comment section below and I'll do my   best to help you and of course if you feel the  video helped you I hope you will click like and   don't forget to subscribe to get updates on new  videos that come out all the time refunding a paid   invoice requires several steps now some of you  might think that you might be able to just make   a refund receipt like we did in our first video  well you cannot and that's because you will not   have a record of the refund in the customers  account and on the customers reports first you   must make a credit memo just like we did in the  previous video then we use the write checks window   to pay the amount of the credit memo and then in  order to finish we use the receive payment window   to apply the check to the credit memo exactly the  way we did in the previous video when we applied   a credit memo to an invoice now we all remember  on the original invoice the income went up and   accounts receivable and the customer records  went up at the moment we made the invoice so   in step one when you make a credit memo we know  that the income that related to that invoice is   going to go down and the customers balance will  go down in the customer records then for step   two when we write the refund check we know that  cash goes down because we're writing a check but   accounts receivable actually goes up because  it would normally decrease when you get money   from a customer so there Fork accounts receivable  increases because you are paying to a customer and   that will be the effect after step two step three  we simply apply the credit memo that decreased   the customers balance to the refund check that  increased the customers balance and then they'll   cancel each other out and the customers balance  will be correct so writing a refund check for a   paid invoice is literally as easy as one two three  for example let's imagine on March 23rd we granted   Betty's request for a refund for the January 2nd  invoice which is invoice number 2 and I happen to   remember that's $1400 well after we do step 1 the  accounts receivable and the customer records for   Betty will decrease it will be a negative number  almost as if we owe her money for this but again   it's only after step 1 but most importantly the  related income account will go down and I happen   to remember that invoice number 2 had 10 editing  hours so editing income will decrease for 1,400   and accounts receivable will decrease for 1400  as well as Betty's balance let's take a look at   how to record it now here we are at the open  invoice report and you can see invoice number   2 has already been paid in order to make the  credit memo we click the plus sign go over to   credit memo in the left column just like we did in  the previous video and we know that in our little   story this event happened on March 23rd of 2017  and it was for customer Betty and just like on   the invoice it was editing hours 10 okay making  $1400 just like we did in the previous video and   when we click Save & close we can take a look at  the reports specifically the trial balance and   you can see that accounts receivable has decreased  if we scroll to the very bottom you can see March   23rd we have a credit memo and it's actually -  1400 bringing the balance of accounts receivable   down okay cuz we're in the accounts receivable  account right now if we go back to the trial   balance you can also see that this also affected  editing income if we come over to editing income   and we click here you can see at the bottom of  editing income from March 23rd we have this credit   memo that lowered the balance of editing income  but more importantly in the open invoice report   you can see that we just made a credit memo that  is on the open invoice report because it means it   has not yet been applied to any invoice and it has  not yet been refunded now in step two we're going   to write a refund check for that credit memo  and accounts receivable will actually increase   and again this is because accounts receivable  would normally decrease when we get money from   a customer so therefore when we pay money to a  customer accounts receivable temporarily goes   up and of course cash and bank goes down because  we're writing a check to the customer now when we   write the check we use the accounts receivable  account as the account that we're paying to and   we put the customer name in the job field watch  carefully how we do it we simply click the plus   sign and we go to the vendor column and go down  to where it says check now of course it's going   to be to the same customer Betty and the check is  coming from the cash and bank account and the date   of that we pay the refund check should be the same  date as the credit memo now what account do we put   well in this case we're paying a check to accounts  receivable you would not put the income account   because the income account already decreased when  we made the credit memo you're putting accounts   receivable to counter the effect of the credit  memo to the specific customer whom we made the   credit memo for so in the customer field in the  bottom right not just the payee it also has to   be in the customer field in the bottom right you  put Betty Boop and the amount is $1400 the exact   amount of the credit memo and now we will click  Save and close and check the result when we look   at the open invoice report we see that both the  credit memo and the check are both on open invoice   because neither of these have been applied so  this check increased the customers balance and   this credit memo decreased the customers balance  and now we're ready for step 3 step 3 we're going   to apply the check to the credit memo and have  the two of them cancel each other out that means   we make a zero dollar payment and of course we  use the same date that we used for both the check   and the credit memo we click the plus sign and we  come over and we click receive payment because we   learned in the previous video that's the window  to use now we put Betty Boop and we can see for   Betty that she has the check making her balance  go up and the credit making the balance go down   you have to click the box in the left margin  for check first so then the credit memo box in   the left margin will be available then click that  now notice you have both the $1400 written check   and the $1400 credit memo checked off on the left  but when you scroll up the amount you received on   March 23rd is zero now when you click Save and  close or save and new and now when you go back   to the original open invoice report you see that  both the refund check and the credit memo have   disappeared they canceled each other out and there  is no effect on the customers current balance