I accidentally overcharged a customer for inventory items sold (I didn’t apply his trade discount correctly to the invoice ) and need to issue a partial refund. What is the best way of accounting for this in Manager?
Thanks for the reply. I invoiced the customer for 6 items at a total of $210 but should have billed him only $171.60 (with a trade discount). So, I need to give him a cash refund of $38.40.
I think I’m getting confused with this section of the guide to Credit Notes:
“If a customer is to receive a partial refund, reduce any amounts on the credit note or remove line items for goods or services not being adjusted”.
Should I enter “$38.40” in the credit note?
Yes, but don’t enter any quantity figure as that doesn’t need adjusting
@Qwerty, remember that the credit note only adjusts what the customer owes you, in this case to the point where you owe the customer. The actual cash refund is done from
Cash Accounts tab, using
Spend money. Allocate that transaction to
Accounts receivable =>
Customer, but leave the invoice number blank.
I have edited the Guide to make the instructions clearer for situations like this where only the price is being adjusted. it now says:
If a customer is to receive a partial refund, reduce quantities or amounts on the credit note to match the refund. Remove line items for goods or services not being adjusted. (If the price of an inventory item is being partially or fully refunded, but the item itself will not be returned, enter the refund amount and change the quantity to zero.)