Processing a Refund
Everyday Workflows → Financials
When to Use This Guide
- A payer requests a full or partial refund.
- A duplicate payment was made.
- An event, class, or order was cancelled and funds need to be returned.
Key Rule
All refunds are initiated from the original Charge (not the payment). This ensures revenue is reversed in the correct Fund & Revenue Account.
Two Ways to Start a Refund
| Path | Where | Steps |
|---|---|---|
| A. From the Transaction row | Financials → Transactions List | 1. Locate the payment. 2. ⋯ Actions → Process Refund. 3. You are redirected to the related Invoice with the list of Charges. |
| B. From the Invoice | People → Invoice → Charges tab | 1. Find the Invoice. 2. Click Process Refund on the desired Charge. |
Both paths end at the same Refund Charge modal.
Modal Fields
| Field | Description | Notes |
|---|---|---|
| Original Amount | Amount of the original Charge. | Read‑only. |
| Available for Refund | Remaining amount that hasn’t been refunded yet. | Reflects partial refunds. |
| Refund Amount | Enter the amount to refund (≤ available). | Supports decimal values. |
Click Refund Charge → system processes the refund and creates a new Refund Transaction.
What Happens Behind the Scenes
- Refund Transaction created with negative amount.
- Journal Entry posted:
- Dr Accounts Receivable
- Cr Cash/Stripe Clearing
- Charge Balance increases (if partial) or zeroes out (if full).
- Refund receipt emailed to payer (if email on file).
Timeline for Funds
| Payment Type | Funds Leave Your Account | Notes |
|---|---|---|
| Card (Stripe) | Immediately; deposit reversal may take 5–10 business days to appear on cardholder statement. | Stripe fees are not returned unless enabled by your agreement. |
| Cash / Check | Manual—mark the refund Transaction as Completed after cash is handed back or check cleared. |
Partial Refund Example
A parent paid $200 for two recital tickets ($100 each). One child cannot attend.
- Locate the $100 ticket Charge.
- Process Refund → enter $100.
- Parent receives $100 back; other ticket remains paid.
FAQ
Can I refund more than the available amount?
No—system validates the amount field.
Why can’t I see the Process Refund button?
You need the Financials → Manage Payments permission and the Charge must have a positive paid amount.
Does the refund affect the donor’s tax receipt?
Yes—the donation amount on the annual giving statement is reduced by the refunded amount.