Refunding a Payment Taken by Hand
How to record money you’ve given back for a payment taken by hand, such as cash handed back or a bank transfer, from the Refund section of the payment, and what it changes.
When you give a customer money back yourself, such as cash handed back or a bank transfer from your account, record it against the payment it came from. Open Accounts > Transactions, click the payment, and choose Refund in the Refund section of its details popup. The refund is recorded as its own entry, so what the customer owes goes back up and the money you received comes down by the same amount.
Which Payments It’s For
- Payments taken by hand: A completed payment you recorded yourself, such as cash, a bank transfer or a cheque, whether with Record payment, on a worksheet or as a payment from New Transaction. Its details popup has a Refund section under Financial Details, which says Money given back, such as cash or a bank transfer, is recorded against this payment.
- Card and Direct Debit payments: These went through a payment provider, so they're refunded through it instead, with Refund Payment on the same popup, and the money goes back the way it came. They have no Refund section, and Work Planner won't record a refund by hand for one: it says Refund this payment through its provider, from the payment itself. See Refunding a Card Payment.
Recording the Refund
Refund opens the Refund popup, for money you’ve given back, such as cash or a bank transfer. At the top it says how much of the payment is left to refund, such as Up to £40.00 of this payment can be refunded.
- Amount given back: Starts as everything that's left to refund. Leave it for a full refund, or lower it when you gave back part of the payment. It can't be more than what's left, and the field says so: You can refund up to £40.00 of this payment.
- Date given back: The day the money went back to the customer. It starts as today, so change it when you're recording a refund you gave earlier. It's the date the refund counts on in your figures.
- How it was given back: One of your own payment methods, such as Cash or Bank transfer. It starts as the way the customer paid, when that's one of them, so change it when the money went back another way, such as cash for a payment made by bank transfer. The methods Work Planner keeps for a connected provider aren't offered.
- Why (optional): A few words on why, such as Overcharged, up to 200 characters. It goes into the refund's description, as Refund: Overcharged. Left empty, the refund is described as Refund.
- Will they owe it again?: Yes, they still owe for the work, which it starts on, puts what was refunded back on what they owe, such as for a payment that wasn't theirs to make. No, it's a goodwill refund is for money you give back as a gesture and won't ask for again: see Goodwill refunds below.
Record refund records it. If something is missing, the field says what: Enter an amount greater than 0., Enter the date it was given back. or Choose how it was given back. Once it's recorded, the popup says so, such as The £40.00 refund is recorded. What they owe has gone back up by that much., and Done closes it. Cancel closes the popup without recording anything.
Refunding Part of a Payment
You can refund a payment in more than one go, up to what was paid: each refund comes off what's left. Once all of it has been given back, the popup says This payment has been refunded in full. instead of asking for an amount. A payment that Record payment split over several invoices, or over several jobs, has a row in Transactions for each, and each row is refunded on its own, up to its own amount. A tip recorded with the payment is its own entry, so it isn't part of what can be refunded.
What the Refund Changes
- A Refund row: The refund shows in Transactions as its own row, with the type Refund, dated the day it was given back, and with how it was given back as its payment method. It's linked to the payment, which stays as it was.
- What they owe: Goes back up by the amount refunded, straight away, on the job the payment was for, as though that part of the payment hadn't been made. When they'd paid more than they owed, the refund takes it off their credit instead. The customer's balance, Debts and Who owes you all show the change. A goodwill refund doesn't put anything back on what they owe.
- Money received: Comes down by the refund, on the day it was given back. The Money Received Card and Net Cash Flow Card take it off, and the Profit and Loss Report takes it off your income, under Refunds.
Goodwill Refunds
Choose No, it's a goodwill refund when you give money back as a gesture, such as for a customer unhappy with the work, and won't be asking for it again. The refund takes it off your income, as a credit note would, and a write-off described as Goodwill refund (with your reason after it) clears what the refund would have put back on what they owe, so they owe nothing for it. That write-off isn't counted as a bad debt, on the Profit and Loss Report or in your Income Tax figures: counting it as one as well would take the same money off your profit twice. Their statement shows it as Goodwill refund, nothing owed. When they'd paid more than they owed, only the part of the refund that would have been owed again is cleared.
Putting a Mistake Right
A refund recorded by mistake is removed like any other transaction: open the Refund row in Transactions and delete it, and what they owe comes back down. Deleting it needs Delete under Payments.
Who Can Refund
The Refund section only shows if your role has the Refund permission under Payments. Owners and admins have it. The default member role doesn't, so team members can take payments without being able to record money going back. You can give it to another role in the Edit Role popup.
Related articles
- Transaction Detail View: The popup the refund is recorded from.
- Transactions List: Finding the payment, and the Refund row afterwards.
- Taking a Payment: Recording a payment taken by hand with Record payment.
- Write-Off Flow: Clearing what they owe when you won’t be asking for it again.
- Money Received Card: The payments that came in, less the refunds you gave.
- Refunding a Card Payment: Giving a card payment back through its provider.
- Editing a Role: Giving a role the Refund permission.