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Record a customer refund

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When you refund a customer by e-transfer, cheque, or cash, that bank withdrawal is a sales return: it reverses the revenue and the sales tax you'd collected, not a business expense:

  1. On Ledger › Banking › Transactions, find the refund leaving your bank account (a money-out line).
  2. Click Refund.
  3. Pick the customer's province and click OK.

Talisk books it as a sales return with the tax backed out for that province, and the line shows a refund chip (with Undo to reverse it). Because the tax is reversed, the refund reduces the GST/HST you'll report for the period.

Don't confuse this with the green Credit refund button, which appears when a client has store credit: that one clears their credit balance and isn't a sales return.

Good to know: This books a sales return with a tax reversal, not an expense, so it only applies to a money-out (debit) bank line, and you must pick the customer's province so the tax comes back out correctly. It's different from the green Credit refund button, which clears a client's store credit rather than reversing a sale.

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