A business may sell packages (a set of services and/or products) in an effort to build a long-term relationship with guests and also to boost revenues. For example, weight loss or body contouring treatments usually last a few months and inevitably, are expensive. Guests usually pay for such packages in installments. 

If yours is a package-based business, you are most likely flexible in terms of collecting payments and allowing refunds. Invoices, where guests have made partial payments, are in Open status (as payments are pending). Invoices, where guests have made the payment in full, are in Closed status (as no payments are pending). Guests may seek refunds on both, open and closed invoices, and that too, multiple times. 

This article covers the following aspects:

  • Before You Begin
  • Process Multiple Refunds on Packages (Open and Closed Invoices) 
  • Impacts

Before You Begin

If you want your front desk to be able to refund payments for packages multiple times, ensure that the organization level setting, Allow to refund a package multiple times, is selected (Admin > Organization > Organizations > Settings > Packages). 

Process Multiple Refunds for Closed and Open Invoices

You can process multiple refunds for a package either from the Appointment Book context menu or from the Guest Profile, for both, closed and open invoices. 

To process multiple refunds on packages where guests have paid the full amount (closed invoices): 

  1. In the Appointment Book, search for the invoice.
    Tip: If you do not know the invoice number, search for the guest and open the Guest Profile.
  2. If you searched with the invoice number, in the Search for an Invoice or a Receipt dialog box, click Show.

    3. In the Invoice and Payment details window, select I want to > Refund Invoice.
        You will see the following screen. 

           The Refund Invoice window appears.
       4. On the Select Items page, select the package you want to refund and enter the            amount to be refunded in the Refund Amount field. Also, enter the reason for                the refund in the Comments box.
           Note
: The refund amount cannot exceed the package balance that remains.                  Also, when processing a refund, any tax that was received on the amount is                  deducted from the relevant accounts for the center.

    5. (Optional): Select the checkbox, Mark package ‘Closed’, if the guest wants to                discontinue using the benefits of the package after the refund. Enter the reason            for the refund in the Comments box and then click Save.

6. If the guest wants to continue to use the remaining benefits of the package, click          Proceed to Refund after step 4. The package remains in Active status and guests        can continue to redeem the remaining benefits at a later time.
    The Payment Methods page appears. 

7. Choose how you want to refund the payment. Learn how
    Note: When a package is refunded the refunded amount gets deducted from the          balance that remains in the package.
     Consider this example.
     Cost of the package = $1000 (guest has made full payment and the invoice is                Closed)
     Guest redeemed = One benefit worth $200.
     Package balance = $800.
     The guest now seeks a refund.
     Amount refunded = $150.
     Revised package balance = $650.
     That is, the refunded amount gets deducted from package balance.
     Balance in a package = (Paid amount - Redeemed amount - Refunded amount).            When you attempt to refund the second time, the refund is deducted from the              revised balance (that is, the second refund is deducted from $650).
      Note: You can process such refunds multiple times (till the redeemable balance             for the guest reaches zero (0). 

To process multiple refunds on packages where guests have paid a partial amount (open invoices):  

  1. Search for the guest and open the Guest Profile.
  2. In the Packages tab, click the Refund icon for the invoice for which you want to process the refund.
    The Refund Invoice window appears.

   3. On the Select Items page, select the package you want to refund, enter the                  amount to be refunded in the Refund Amount field, and enter the reason for the          refund in the Comments box.
       Note: The refund amount cannot exceed the package balance that remains. Also,         when processing a refund, any tax that was received on the amount is deducted           from the relevant accounts for the center.

      4. (Optional): Select the checkbox, Mark package ‘Closed’, if the guest wants to                discontinue using the benefits of the package after the refund. Enter the reason            for the refund in the Comments box and then click Save.
      5. If the guest wants to continue to use the remaining benefits of the package,                 click Proceed to Refund after step 4. The package remains in Active status and             guests can continue to redeem the remaining benefits at a later time.
          The Payment Methods page appears. 

     6. Choose how you want to refund the payment. Learn how
         Note: When a package is refunded the refunded amount gets deducted from                the balance that remains in the package.
         Consider this example.
         Cost of the package = $1000 (guest has paid $500 and the invoice is open)
         Guest redeemed = One benefit worth $200.
         Package balance = $300.
         The guest now seeks a refund.
         Amount refunded = $150.
         Revised package balance = $150.
         That is, the refunded amount gets deducted from package balance.
          Balance in a package = (Paid amount - Redeemed amount - Refunded amount).             When you attempt to refund the second time, the refund is deducted from the               revised balance (that is, the second refund is deducted from $150).
          Note: You can process such refunds multiple times (till the redeemable balance             for the guest reaches zero (0). 

Impacts 

  • Sales: Sales for the day will go down by the refunded amount.
  • Collections: Collections for the day will go down by the refunded amount.
  • Liability: The Refunded amount will be reflected under 'Refunds' column in the Packages Liability report and Closing Balance will reflect the updated liability including refunds.
  • Revenue: There is no impact on how the service credits are apportioned, the refunded amount will only impact package balance. When benefits are redeemed based on the remaining balance, revenue is recognized as usual. 

See Also

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