How to Refund a Sales Order Customer Deposit

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.
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