Refund
In Arabic استرداد المبلغ
A refund is money a seller pays back to a customer, usually after goods are returned or an overcharge is found, reversing all or part of an earlier payment.
In plain words
A refund is the cash side of a correction. The credit note reduces what the customer owes; the refund returns money they have already paid. A customer who has not paid yet needs only the credit note, not a refund.
Refunds are normally paid by the method the customer used, and for no more than they paid on that invoice. Many businesses offer store credit instead, which keeps the money inside the relationship.
The common mistake is refunding without a credit note. The cash goes out, but the invoice still shows as owed, so the customer is chased later for money they were already given back.
- Invoice total
- SAR 100.00
- Paid on the invoice
- SAR 30.00
- Credit note for the return
- SAR 57.96
- Refunded
- SAR 30.00
- Still owed on the invoice
- SAR 42.04
In Axon Suite
How Axon Suite handles it
In Axon Suite a refund on a return posts the credit note against the invoice and pays back what was paid on it, up to the credit, from the bank account the customer paid into and by the same method.
Feature
Sales returns and credit notes
Raise the return against the original invoice, approve it and receive the goods back into the warehouse. Then decide what the customer gets: a refund, store credit or a replacement. A refund or store credit posts a credit note against that invoice.
Open: Sales returns and credit notes