# How would i issue REFUND for customer product return? **URL:** \ **Category:** Uncategorized\ **Created:** [October 4, 2015, 2:59pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861 "2015-10-04T14:59:10Z")\ **Posts on this page:** 15\ **Page:** 1
**Author:** ![neilbailey01](https://avatars.discourse-cdn.com/v4/letter/n/65b543/32.png) [@neilbailey01](https://forum.manager.io/u/neilbailey01)\ **Post date:** [October 4, 2015, 2:59pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/1 "2015-10-04T14:59:11Z")
Thank you for producing an excellent accounting software package , what is the correct way to process a customer refund as they have returned a product to my business and require a refund FULL PAYMENT? ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [October 4, 2015, 4:52pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/2 "2015-10-04T16:52:26Z")
Read the Guide and its subordinate pages at [Manager Cloud](http://guides.manager.io/businesses/credit-notes). ---
**Author:** ![neilbailey01](https://avatars.discourse-cdn.com/v4/letter/n/65b543/32.png) [@neilbailey01](https://forum.manager.io/u/neilbailey01)\ **Post date:** [October 4, 2015, 8:47pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/3 "2015-10-04T20:47:39Z")
Thank you TUT i will look at the guide. ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [October 4, 2015, 10:35pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/4 "2015-10-04T22:35:16Z")
There is also one more article in different section you can check: [http://guides.manager.io/businesses/sales-invoices/handling-customer-returns](http://guides.manager.io/businesses/sales-invoices/handling-customer-returns) ---
**Author:** ![neilbailey01](https://avatars.discourse-cdn.com/v4/letter/n/65b543/32.png) [@neilbailey01](https://forum.manager.io/u/neilbailey01)\ **Post date:** [October 5, 2015, 8:24am UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/5 "2015-10-05T08:24:08Z")
Thank you for your updated information , i have now issued the CREDIT NOTE and then processed it through the BANK ACCOUNT tab to CUSTOMER CREDITS as directed , all is now correct and up to date. ---
**Author:** ![cobgarden](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/cobgarden/32/1683_2.png) [@cobgarden](https://forum.manager.io/u/cobgarden)\ **Post date:** [November 23, 2015, 7:07pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/6 "2015-11-23T19:07:40Z")
My client offers massage - um, I’m mean Accupressure - sessions and sometimes needs to issue refunds to not 100% fully satisfied customers. In this case (as opposed to a product return) it is a loss to the business - the service was rendered, but payment, in effect, not received. The “handling-customer-returns” procedure is indeed very simple, but we would like to be able to track these refunds. I believe they would be categorized as an expense. Any thoughts? ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [November 23, 2015, 8:01pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/7 "2015-11-23T20:01:32Z")
You could create a `Customer refund` expense account. Financially, this is the equivalent of a marketing expense, something you did with the hope of generating future business. But you could also track via `Credit Notes`. ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [November 23, 2015, 10:16pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/8 "2015-11-23T22:16:55Z")
> [@cobgarden](#): > > My client offers massage - um, I’m mean Accupressure - sessions and sometimes needs to issue refunds to not 100% fully satisfied customers So customers pay in advance? If that’s the case, customer would have a customer credit under `Customers` tab. If customer is not happy, I assume no invoice will be issued. In this case they should be refunded by simply categorizing payment back to customer to `Customer credits` account. This will clear their credit. And no sale will be made. ---
**Author:** ![cobgarden](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/cobgarden/32/1683_2.png) [@cobgarden](https://forum.manager.io/u/cobgarden)\ **Post date:** [November 23, 2015, 10:43pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/9 "2015-11-23T22:43:28Z")
No sale will be made, but service has been rendered. ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [November 23, 2015, 10:45pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/10 "2015-11-23T22:45:05Z")
And just to confirm, do clients really pay in advance before service is provided? ---
**Author:** ![cobgarden](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/cobgarden/32/1683_2.png) [@cobgarden](https://forum.manager.io/u/cobgarden)\ **Post date:** [November 23, 2015, 10:46pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/11 "2015-11-23T22:46:40Z")
Sometimes they do, sometimes they don’t. I’m not party to why the client gets a refund after the service has been rendered - something to do with “if you don’t fell better in 4 days I’ll refund…” maybe. ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [November 23, 2015, 10:51pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/12 "2015-11-23T22:51:02Z")
I see. If they don’t pay at all, then for accounting purposes, no transaction needs to be recorded even if service has been provided. It they pay and then ask for refund a few days later, then just create an income (or expense) account called `Refunds to customers` and simply pay them back and categorize this to this refund account. This way your client can see how much they have refunded over certain period. Don’t use `Customers` tab or `Sales Invoices` tabs at all. These are mostly for credit sales which is not what’s going on here. This is simple cash business so I would just record all these sales and refunds within `Cash accounts` tab (or `Bank accounts` tab in case bank accounts are involved too) ---
**Author:** ![cobgarden](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/cobgarden/32/1683_2.png) [@cobgarden](https://forum.manager.io/u/cobgarden)\ **Post date:** [November 23, 2015, 11:00pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/13 "2015-11-23T23:00:04Z")
Would it get confusing if he used both the credit note system, and the refund account for the different purposes? I don’t see a problem, but I’m new to this system so just double checking. Basically if the patient wanted a credit, we’d issue a credit note on the original invoice. But if they said, not a good fit I want my money back, then we’d just post a refund direct to the account. Is this right? Thanks for the quick response! I’m meeting with my client in a couple of hours to do a run through. He made quite a mess with the books, and it has been fun learning Manager. ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [November 23, 2015, 11:05pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/14 "2015-11-23T23:05:57Z")
It’s not wrong to use `Customers`, `Sales Invoices` and `Credit Notes` tab even if it’s mostly cash business. It might be an overkill. From accounting point of view, what you are proposing is fine. ---
**Author:** ![Ealfardan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/ealfardan/32/63166_2.png) [@Ealfardan](https://forum.manager.io/u/Ealfardan)\ **Post date:** [January 18, 2023, 3:35pm UTC](https://forum.manager.io/t/how-would-i-issue-refund-for-customer-product-return/3861/15 "2023-01-18T15:35:43Z")