Xero Bank Accounts - How to Reconcile a Refund for a Paid Invoice in Xero Using a Credit Note

►► Do you wish you could get step-by-step instructions for setting up and using Xero quickly and easily?
►► Do you want clear explanations in plain English with all the information in one place?
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Learn how to reconcile in your Xero bank feed a refund given to a customer for a fully paid or partly paid invoice by using credit notes. This process can be used for full or part refunds.

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[mark-and-trina]

►► Do you wish you could get step-by-step instructions for setting up and using Xero quickly and easily?
►► Do you want clear explanations in plain English with all the information in one place?
►► Do you want to feel confident that you’re doing it right?

[WellesleyStudios]

Xero needs to pin this to their own 'help page' their articles are difficult to understand!

[WellesleyStudios]

This is always so helpful when I haven't done a refund in a while!

[Lochnivar]

Great video, really useful. Was able to use this method to reconcile a partial refund from a supplier for a paid bill. Like you said, the key is getting the date right (matching the original payment date) when you manually pay the refund, otherwise (as I found the first time I tried) Xero won't link it and go green in the bank feed.  

I'm considering using the same method for a couple of payments that bounced back when paying suppliers (i.e. payment went out, then was returned due to their bank details changing) - although, I think deleting the statement lines is probably the better way of doing it else I might skew reporting etc.

Thanks a lot for your video

[kimbim]

Thanks you! It was so satisfying seeing the reconcilation suggestion pop up!

[garyfowler]

Really appreciate this video, really helpful and clear, thank you.

[heroicwhisper]

Fantastic video. Never knew how to create a refund. Will use your method in the future.

[jiiimmm]

Thanks a bunch!! Saved me a lot of hassles!

[PatrickBrunelle]

Thanks for your helpful video! Just sorted my refund now, much appreciated!

[WalkyTalkyWT]

Very useful one. I just learnt it today.

[WilliamHumphries-on]

Thanks for the video. One question - isn't it preferable to have the credit note associated directly to the invoice? Otherwise the invoice continues to show as fully paid. So could I remove the payment, apply the credit to the invoice, and then create receive and spend money transactions?

[luzive]

Hi Mark, how do you correct the selling price of an invoice when a split payment has already been applied. Thanks.

[michaeleric]

I just started using Xero. My customer put a deposit on a sofa and then changed her mind, so I refunded her deposit. What I have now is a partially paid invoice that I am trying to refund. Do you have a video tutorial for that? Thanks!

[Pablo-vpmy]

Thank you for the video! I am struggling with my paypal account refunds, would this work the same? `Also for Afterpay etc?

[mr]

How about when the supplier has refunded you ? Everyone seems to only show how to refund a client not how to reconcile a refund to you…..

[RobynSchoombie]

How does this work for a part refund? I cannot allocate it on my xero.

[annachiarawanagat]

I have a bank deposit that has multiple payments and it also includes a customer refund with it. How do I reconcile it? My statement line is received not spent.

[weetbixx]

How can I put a refund against a payment that has already been reconciled?