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Refunding Customer Overpayments
If a customer overpays you and you want to refund the money, this is how we suggest you deal with it:
Let’s assume you invoice the customer for £940. They pay you £1000 on the 1st of March, you refund them £60 on the 3rd March.
We need to make sure that the KashFlow bank account corresponds with your actual bnank account. So the first thing to do is to add the payment of £1,000 to the original invoice. Date the payment 1st March as per the date it was received.
The invoice will now be showing a balance of -£60.
You do not need to create a Credit Note for this amount. All you would need to do is refund the money. Let’s assume you refund the money on the 3rd of March. Just go to the invoice and record the payment for -£60 on 3rd March.
Your bank account on KashFlow will now always be in line with your real bank account and you will have accurately recorded the trail of money coming into your account and going back to the customer.