My customer had ordered goods worth 1000 GBP but paid 2000 GBP. How do I record a refund for 1000 GBP to the customer in Zoho Books?

In this scenario, the customer has made an excess payment of 1000 GBP. Now, you can refund the excess payment or use them as credits later. Here’s how you first record a payment from the customer:

• Go to the Invoices module on the sidebar.
• Click the + New button to create an invoice for the repsective customer.
• Navigate to Payments Received under Sales Module on the sidebar.
• Click the + New button to record a new payment.
• Select the Customer Name from the drop-down for whom you wish to record a payment.
• Fill in the Amount Received field as 2000 GBP.
• Navigate to the Unpaid Invoices section, from where you can apply the recieved amount against outstanding invoices.
• Click Save.

The excess amount will be recorded as unearned revenue and you can refund the same.

Here’s how:

• Navigate to Payments Received under Sales Module on the sidebar.
• Locate the payment for which you desire to provide a refund.
• Click the More icon.
• Select Refund from the dropdown menu.
• Enter the refund amount. You can refund the amount fully or partially.
• Enter other required details such as Refunded On and From Account.
• Click Save.

A payment refund will be recorded against the particular customer.