The procedure for refunding a customer deposit will fall into two categories based on the refund method as follows:
- Where the deposit was paid by credit card and the credit card was simply refunded, the procedure is simply to enter a negative payment amount in the Sales Order payment window referencing the same payment method as the original deposit payment.
- Where a refund is being made by way of a check, proceed as follows:
- Enter a negative payment amount in the Sales Order payment window. Choose an appropriate payment method, or you may want to setup a Customer Payment Method of 'Refund Check' to clearly indicate the purpose of the credit payment.
- Prepare a Bank Deposit"
- Select the credit payment defined above.
- In the 'Miscellaneous Cash Receipt' tab, enter a positive amount of the refund and choose the 'Contra AR/AP' account (see help article How to Process Contra AR/AP Accounts for instructions on setup).
- The bank deposit 'Total Deposit' should now be zero.
- Set status to Completed and save&close.