There may be (hopefully not) an occasion where you'll need to refund a client for some, or all, of your services. Whilst this isn't ideal, you'll need to make sure that this is recorded correctly in Crunch in order for it to be accounted for.
To refund a client, navigate to the ‘Sales’ tab and then to ‘Invoices’.
From the list of invoices, press the ‘Options’ button on the settled invoice that you’d like to create the refund against, and then select ‘Raise credit note’ from the drop-down menu:
You should then be presented with the "New credit note" form, where you’ll need to enter the “Issue date” of the refund, the “Reason” for the credit note, along with the net amount you wish to refund.
Please note: If you’re VAT Registered, Crunch will automatically add VAT on top of the credit note. You’ll need to enter the ‘net amount’ (the amount minus the VAT) and crunch will calculate the 20% on top automatically once you raise it.
Once you’re happy that the information is accurate, clicking on ‘Raise credit note’ will provide confirmation that your credit note has been created against the invoice. However, this will leave it in a “draft” status, as this allows you to make changes to the credit note if you spot a mistake afterwards.
Once you're sure you have the details correct, navigate to the sales invoice and click the blue writing (£XX.XX in draft) in the ‘Credit notes’ column, as shown below:
This link takes you to the invoice summary, where you’ll see your credit note in this “draft” status at the bottom.
Simply click on the ‘Options’ button and select ‘Issue’ to confirm the credit note:
On the next screen, which shows the .PDF of your credit note, you can choose to email the credit note to your client or issue it. You can also issue it with the buttons at the bottom of the screen.
Once you've issued your credit note, you'll see that the "Status" has changed to "Outstanding" - this is because you’ve not yet recorded the fact that you’re giving the money back to your client, so you’ll now need to record the refund being paid out. Click the ‘Options’ button again and select ‘Record refund paid’:
In the "New Refund" form that you’ll be presented with, enter the details of your refund, including the date on which you paid it back to your client, as well as the payment method and bank account the money was paid out of.
Our example is below:
Once you’ve entered and allocated the amount to the relevant invoice, click ‘Save refund’ and the process of issuing a refund to one of your clients is complete.
What if my ‘issued invoice’ is a mistake, not a refund, and I need to ‘delete’ it?
Need some more help with issuing & emailing, editing or printing your sales invoices?
Check out this article here
Need to record a ‘client payment’ against an invoice?
Amazing! Let’s make sure it’s done right, please see here
Interested in setting up a ‘recurring invoice’?
- Go on then! Check this out