If yours is a business that offers high-cost series packages or packages that stretch over long periods of time, it is likely that you are flexible in collecting payments and allowing refunds. 

Most businesses allow refunds up to an amount equal to the balance remaining on the package. For example, a package costs $500. A guest has redeemed $200 worth services and then seeks a refund. Most businesses allow a refund of the balance amount (that’s $300). 

At times, with the goal of building long-term relationships with guests, you may allow your organization to process refunds that exceed the current package balance. Consider the same example again. A package costs $500. A guest has redeemed $200 worth services and then seeks a refund. A business may allow refunds of more than $300. 

This article covers the following aspects:

  • Before You Begin
  • Process Refunds that Exceed Current Package Balance (Closed Invoices)
  • Process Refunds that Exceed Current Package Balance (Open Invoices)
  • Impacts

Before You Begin

  1. Users with the permission, Excess Refund (from Security Roles > Permissions tab > Admin > Packages) can process refund amounts that exceed the current package balance amount.
  2. You can process such refunds for both, closed and open invoices.
    Note
    : Invoices, where guests have made the payment in full, are in Closed status (as no payments are pending). Invoices, where guests have made partial payments, are in Open status (as payments are pending). 
  3. You can process such refunds for packages that are closed (Packages with Closed status).
  4. If the organization level setting, Allow to refund a package multiple times, is ON (Admin > Organization > Organizations > Settings > Packages), then you can process multiple refunds that may exceed the current package balance. 
  5. If the organization level setting, Allow to refund a package multiple times, is OFF, then you can refund more than the available balance, but only once. The package then moves to the 'Cancelled-Refund' status after the refund. 

To process refunds that exceed the current package balance when 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 can exceed the package balance that remains.                  

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

To process refunds that exceed the current package balance when 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 can exceed the package balance that remains. For example, here the guest has paid $1000, but authorized users can process a refund in excess of this amount (say $2000).

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

Impacts

  • Balance: Balance is calculated as (Paid amount - Redeemed amount - Refunded amount). If the balance is in negative, then it appears as 0.
  • 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: Refunded amount will be reflected under 'Refunds' column in Liability report and Closing Balance will reflect the updated liability including refunds.
  • Revenue: When benefits are redeemed based on remaining balance, revenue is recognized as usual. 

See Also

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