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.
Invoices, where guests have made such partial payments are in Open status in Zenoti (as payments are pending on these invoices). If guests change their mind about a package and ask for a refund, the front desk can process refunds as long as the guest has not redeemed any services from the package.
This article covers the following:
Before You Begin
How to Process Refunds
Things to Consider
Before You Begin
If you want your front desk to be able to refund payments on open invoices, contact Zenoti Support.
The front desk can process a refund on an open invoice only if the guest has not redeemed any services from the package.
Once you choose that your organization should be able to ‘refund’ payments on open invoices, you cannot change the setting to allow your front desk to ‘delete’ such payments.
If a guest pays using cash, the front desk can choose a different refund mode such as say, custom method to process the refund. That is, the refund mode can be different from the original payment method. However, this again depends on the role permissions of the user processing the refund.
For example, assume the user processing the refund has the permissions to refund using only cash, card, and check. When such a user tries to refund an open invoice, she can view only these refund modes in the drop-down list (such a user will not have the option to refund using say, custom).
To process refunds on open invoices
Click the View transactions icon on the invoice.
Note: If your organization has configured the ‘Delete’ option such that the front desk can delete payments added to open invoices, then you will see a delete icon (X icon) instead of the View transations icon.
3. Enter the amount that you want to refund in the Transaction Details screen and click Refund.
Note: You can issue a refund only up to the amount mentioned as ‘You can refund up to …”.
4. Select the Refund Mode.
You can select only one refund mode per refund transaction.
For example, your guest may have paid using cash, but your refund mode can be a check, custom payment method, or cash depending on your role permissions.
5. Click Refund.
Notice that the Invoice Logs section is updated with the refunded amount (the refunded amount appears as a negative entry).
The invoice too is updated with the refunded amount as follows:
Note: You can print the invoice using the Print icon.
Things to Consider
Zenoti allows the front desk to refund an open invoice multiple times using different refund modes. For example, on an invoice worth $100, the front desk may process two refunds - one of say $40 (with ‘custom’ as the refund mode) and another of $30 (with ‘cash’ as the refund mode, as long as the user processing the refund has the required refund permissions).
After the front desk processes a refund, the refund cannot be edited. For example, assume that a guest paid $100 and the front desk processed a refund of $80. No further actions can be performed on the refunded amount - except printing the receipt. However, the front desk can issue another refund for the balance amount ($20) from the original $100 payment.
Any user who has access to open invoices can refund payments on open invoices. (User must have the Refund > Custom and Packages > Refund checkboxes selected under Administrator permissions).
Any user who has access to open invoices can refund payments on open invoices. (User must have any of the refund permissions under Refund > Refund checkboxes (Cash, Card, Check, Custom, Tips, SSG,) selected under Administrator permissions).
If an invoice is locked or closed, only those users who have permissions to reopen will be able to reopen invoices and then process refunds.
Refunds on open invoices are possible even if financial lock period is on since there is no impact on past transaction data.
For every refund the front desk processes, Zenoti adds a negative entry to records so that there is no impact on past payments and past financial data.
Sales numbers remain unaffected as refunds are processed on open invoices.
Collection numbers are impacted - on the day a refund is processed, collection reports show the refunded amount as a negative entry.