A Cash Refund should only be used to refund a prepayment or overpayment. A cash refund is issued immediately and has no impact on the Accounts Receivable General Ledger. The GL impact is credit on Undeposited Funds. 

Here are the steps in creating a Cash Refund.

  1. Open the Sales | Invoices menu. If there is no existing record yet, this will open a new Invoice screen. If not, click the New button to open a new Invoice screen. 
  2. Fill out the header details as needed. The required details are Customer, Location, Bill To, Ship To, Terms, and Currency.
    1. Select a Source. The options are Standard, Software, Tank Delivery, and Provisional.
    2. Set the Type to Cash Refund.
    3. Select a Customer.
    4. Select a different Location, Bill To, Ship To, Terms, and Currency if needed. But don't leave these fields blank.
  3. Click on the Prepaids and Credit Memos tab
    1. Click on the Apply checkbox next to the record that you wish to refund 

  4. Save or Post the record. The Invoice No field will be filled in with a unique and system generated number.

    You can skip saving the record if the transaction is to be posted right away since it will be saved automatically.

    Here is a sample cash refund.



Let us view the GL entries when this invoice is posted. Click the Recap button. Notice that is has a direct impact on Undeposited Funds, and not on Accounts Receivable.


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