FAQ: Refunds & Returns on Invoices

Can I refund an invoice that was already partially paid?

Yes. You can refund part or all of a paid invoice. The refund reduces the customer's balance. If they have already paid part of the invoice, the refund will credit their account, giving them a balance in their favor (money you owe them) or reducing their outstanding amount.

What happens to inventory when I refund?

All items included in the refund are added back to the warehouse. The quantities are restored to the inventory location they were shipped from. If you do a partial refund, only those items are returned to stock.

Can I edit a refund after posting?

Once a refund is posted, you cannot edit it. If you need to adjust it, consult your admin or accounting team about creating a counter-refund or adjustment. Do not delete posted refunds without guidance.

What if I refund the wrong amount or items?

If you posted an incorrect refund, do not delete it. Instead, create a new adjustment refund to correct the error. For example, if you over-refunded by AFN 500, create a small refund to reverse the difference, or create a separate payment entry to balance it.

Does a refund affect my sales reports?

Yes. Refunds reduce revenue in your reports. A complete refund on an invoice removes the revenue entirely for that sale. Partial refunds reduce the revenue proportionally. This is correct—your reports should show the actual money in and out.

Can I refund to a different customer?

No. A refund must be tied to the original invoice and customer. If you need to issue a refund to a different party, consult your admin about the correct way to handle that scenario (it may require a separate transaction).

When should I use partial vs. complete refund?

Use Partial Refund when the customer is returning only some items and the sale is partially kept. Use Complete Refund when the entire order is being returned or cancelled. This ensures your invoice is correctly marked as either still active (partial) or fully settled (complete).

Do refunds post immediately or do they need approval?

Refunds post immediately upon save unless your system is configured to require approval. Check with your admin if you need a multi-step approval process for refunds. Once posted, the accounting impact is instant.