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Record a customer refund

Open this in Talisk HQ

When you refund a customer by e-transfer, cheque, or cash, that bank withdrawal is a sales return: it reverses the revenue and the sales tax you'd collected, not a business expense:

  1. On Ledger › Banking › Transactions, find the refund leaving your bank account (a money-out line) and open its details with the chevron at the start of the row.
  2. Under Change what this is, click Customer refund.
  3. Pick the customer's province and click OK.

TALISK_HQ books it as a sales return with the tax backed out for that province, and the line shows a Refunded ✓ chip. To reverse it, open the details again and click Undo refund. Because the tax is reversed, the refund reduces the GST/HST you'll report for the period.

This works on bank lines in your book's own currency. A foreign-currency line is refused rather than recorded at the wrong value, since the sales tax is worked out from the amount on the line.

Don't confuse this with the green Credit refund button beside it, which appears when a client has store credit: that one clears their credit balance and isn't a sales return. If a customer paid you twice and you're sending the extra back, record the deposit as a customer credit first, then use Credit refund on the withdrawal.

Good to know: This books a sales return with a tax reversal, not an expense, so it only applies to a money-out (debit) bank line, and you must pick the customer's province so the tax comes back out correctly. It's different from the green Credit refund button, which clears a client's store credit rather than reversing a sale. It works on bank lines in your book's own currency only.

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