• When a prepayment is received from the client, record it under receipts (Operations -> Receipts). It doesn’t matter whether you enter it manually or import it via bank import.
• The refund to the client must also be added under receipts. It cannot be done through bank import and must be entered manually. Select the client and the correct bank account (if there are multiple), enter the refund date, and record the refunded amount with a minus sign.

Now you have both a positive and a negative receipt, which need to be cleared from the sales ledger.

• If an invoice has been issued to the client within the same financial year, you can link both receipts to that invoice. If the invoice is already marked as paid, first remove the original linked receipt from the invoice. You can do this by clicking the chain link icon in the “Receipts” section of the invoice view. Once the original receipt is removed, you can re-link the receipts by choosing Mark as paid from the Actions menu, then link the negative receipt (1), the positive receipt (2), and finally the correct payment (3) to the invoice.

• If you issue a partial refund, you’ll probably create an invoice for the remaining amount, and the refund can be linked to that invoice. It is important to remember to link the refund (the negative receipt) first.
• If no invoice has been issued to the client within the current year, we recommend creating a sales invoice dated the same as the prepayment receipt and linking the prepayment to it. Then, on the refund date, create a credit invoice based on the previously added invoice and link the refund to the credit invoice.

If it’s not important for the transaction to appear in the client’s transactions statement (a one-time client, not saved in the client base), both the prepayment and the refund can be entered simply as a financial transaction (Accounting ->Transactions) or via bank import.