You can return a sale when the product or service is non-inventory and the customer has fully paid for the sale.
Return Fully Paid Non-Inventoried Sale
- Verify that the Accounting Type on the account is set up as Customer and Vendor.
- Create an Account Payable to the customer. The amount to refund on the Account Payable Line should be positive. The Expense GL account on the Account Payable Line should be set to the Revenue GL Account originally used on the Billing Line for the original product sale.
- Create a Cash Disbursement by following the standard instructions for creating a single or batch cash disbursement(s).
Tip: In the Payee Reference field of the Accounts Payable, indicate the Billing and reason for the refund to the customer. This explanation will be printed on the check or, if a credit card transaction, can be useful in reconciling the account.