Important Information about Refunds

• Method 1 - You can issue a refund by creating a credit memo from the original invoice. By doing this, your original invoice is not modified. The credit memo can be set to include several items from the original invoice, or all of them. This method provides a clearer record and is the recommended method.

• Method 2 - You can refund money to a customer by making adjustments to the original invoice and issuing a refund. This method should NOT be used if you post transactions! Making changes to a posted invoice will cause your accounting software to be out of balance with Spectra/myStratus. 

Instructions

Method 1 - Creating a Credit Memo to Issue a Refund

If the invoice has been posted, you must create a Credit Memo in order for the refund to be recorded in your accounting software.

1. Open the original invoice.

2. On the File menu, click Create Credit Memo.

3. Fill out the Create Credit Memo Menu to add specifications for the new credit memo:

 

• General Information: Fill out the information for the new credit memo that will be created including Invoice Classification, Invoice Status, Invoice Description, and Sales Rep.

• Credit Memo Type:
  • Issue a Refund for Entire Invoice - Select this option to create a credit memo for the entire Invoice Total, including Discounts and Shipping Costs.
  • Issue a Refund for Returned Products - Select this option to create a credit memo for specific items from the original invoice that have been returned. Check the box for each item that is being returned, fill out the appropriate quantity that is being returned, and select the reason the product is being returned. To set up your Invoice Credit Reasons, go to  Maintenance > Invoice > Invoice Credit Reasons.  See Invoice Credit Reasons for more information. 
  • Issue a Customer Service Refund - Select this option to create a credit memo if you are issuing a refund for any other purpose. Choose the Price List Item that will be designated for giving credit to clients (i.e. "Customer Refund"), choose the Reason for the credit, and the Amount for the credit. To set up your Invoice Credit Reasons, go to  Maintenance > Invoice > Invoice Credit Reasons.  See Invoice Credit Reasons for more information. 

Click OK to create the Credit Memo. Note: Because you are creating a credit memo, the software will automatically enter a negative amount.

1. Click Save to save changes to the credit memo.

2. Now click Payment or Refund on the ribbon to issue the refund. 
   
   

3. Choose Refund as the type.

4. Select the Refund Method and enter the Refund Amount. Note: This is also considered a negative amount by default.

5. Save the refund.

6. The refund will be shown in the Payments & Refunds section on the Order Detail tab of the credit memo.
   
   

7. Make sure the Balance Due on the credit memo is zero and then save and close the credit memo.

8. The new credit memo will be shown on the Invoices hub as a separate item from the original invoice and will be posted as such.
   
   

Method 2 - Issuing a Refund by Modifying the Invoice

If the invoice has not been posted (or you do not post invoices), you can follow these steps to issue a refund by modifying the original invoice. However, if you want to keep a separate record for the refund, you should create a Credit Memo by using Method 1 above.

1. Open the invoice.

2. Go to the Order Detail tab. If the quantity of the item to be refunded is more than one, just reduce the quantity and the extended amount will reflect the change. If the quantity is equal to one, create a new line and record the item with a negative quantity (such as "-1"). The extended amount will be a negative amount and the invoice total will be reduced.
   
   

3. Click Save to save the changes to the invoice.

4. Now click Payment or Refund on the ribbon to issue the refund.
   
   

5. Choose Refund as the type.

6. Choose the Refund Method and enter the Refund Amount. Note: You can either type in the amount or click the "<" button to easily enter the entire open credit amount.

7. Save the refund.

8. Make sure the Balance Due is correct on the invoice and then save the invoice.

9. The refund will be shown in the Payments & Refunds section on the Order Details tab of the invoice.