SALES & INCOME

Refunds

Crediting a customer and returning their money are two separate actions.

Refund – Credit Customer Account

This records the refund against accounts receivable and a refund account. It reduces the amount owed by the customer, or creates a credit, without paying money out of a bank account.

• Refund to account is the accounts-receivable account being credited.
• Refund account identifies the refund or sales-return category that reduces revenue.
• Customer links the credit to the person or business receiving the refund.
• Sales tax and the amounts should reflect the sale being refunded.
• Cost of goods returned is the original cost of returned goods, not their selling price. A positive value restores inventory value and reverses that cost of goods sold.

Pay Customer – Pay Out from Bank

Use this when you actually return money to the customer. Select the paying account under Paid From, link the customer, and check the payment date, currency and amount.

Enter the payout as a positive amount. PiggyZen handles the outgoing direction for this action. The payout moves money out of the selected account; it does not record the sales refund again.

Which actions are needed?

If a customer keeps the credit on their account, record the credit only. If you return the money, record the credit and the separate payout. If the credit already exists, record only the payout.