I’ve been racking the forums and my brain how to do this, and I haven’t come up with an answer yet. Hopefully some of you already have this worked out and are willing to share their learning with me.
I am trying to figure out how to refund a payment that was applied to a sales invoice without creating a credit memo refunding the entire sales invoice.
Here’s a scenario:
- Sales Invoice is made out for $5000
- Payment of $500 is applied to the sales invoice
- The customer used the wrong card and wants to change the card. The payment needs to be refunded, but we are still owed the full amount of the Sales Invoice.
In our particular business there are other ways the customer might need a refund where we will still be owed the entire amount of the Sales Invoice.
How do we handle this scenario? I have been made to understand, for example, that in QuickBooks you can apply a refund to an invoice and it simply increased the amount owed. That would work perfectly in this case. However, if I try anything like that I get the error “Cannot Pay to Customer without any negative outstanding invoice”.
The only way that seems to work for refunds is if a Credit Memo is written against the entire Sales Invoice to bring the balance down to a negative.
How can I accomplish my objective?