Refund Transactions - When Do You Use Them?

Refunds are transactions processed to record the reversal of a payment. If a payment has been recorded for a client which requires a correction, a refund can be processed to reverse the transaction.

Refunds can be used when a payment amount has been recorded incorrectly, when the wrong payment method was selected for the payment, or if a payment was recorded against the wrong session. Instead of deleting a receipt that contains the details of the original payment and removing the transaction from the client’s history, you can process a refund to provide evidence that the funds have been returned to the client.

The benefit of processing a refund is that you have a record of the transaction to reference at any time. If a dispute arises as to the balance of an account or the status of a client payment, you can refer to their Invoices, Receipts, and Refunds documents to obtain a complete picture of the client’s financial history with your practice.