The Goal: Understand what happens to accounting entries and invoice balances when a refund is created in GrowthZone, including how overpayment refunds are handled differently.
Before You Begin:
- This article explains the conceptual behavior of refunds. For step-by-step instructions on processing a refund, see Process Refunds - Credit Card Processing - Integrated or Process Refunds - ACH - Integrated.
What Happens When You Create a Refund
When you create a refund:
- The refund will reverse the original accounting entries in the past and offset them in the future.
- When creating refunds, you will have the option to:
- Write off the open balance on the invoice — This is the default option and will refund the specified items on the invoice.
- Leave Invoice Open — This will occur when the refund is processed, keeping the invoice open for future payment.
Refunds on Overpayments
Overpayment refund behavior depends on whether the overpayment was applied to an invoice:
- Overpayment not applied to anything: The refund will simply reverse the accounting and will NOT open the credit balance on the contact and will NOT open the overpayment balance on the payment.
- Overpayment applied to an invoice: The refund would open the invoice balance but will NOT open the credit balance on the contact and will NOT open the overpayment balance on the payment.
Common Pitfalls
- Expecting the Credit Balance to Reopen: When refunding an overpayment — whether applied to an invoice or not — the credit balance on the contact does not reopen. The accounting is reversed directly.
- Choosing the Wrong Write-off Option: The default write-off option closes the invoice. If you intend to leave the invoice open (e.g., for a future payment), explicitly select Leave Invoice Open.