There may be situations when an order needs to be cancelled and by a customer but you have taken a prepayment that needs to be refunded in in cash rather than credit.   Here’s how to do this.

First of all, DO NOT create an invoice.

Create Refund payment #

1. Open the Customer in Companies and check the vendor checkbox (this is needed so you can write a check).
2. Navigate to Bank/Payments and Create a New Payment.
3. On the lines, use Customer Prepayment as the account.  Fill out the rest of the fields normally and Save.
4. Navigate to Cash/Cash Receipts and Create New.
5. Enter the customer name.
6. In the Invoices section, check the Cash Receipt entry.
7. Click on Credits and check the payment entry.
8. Click Save and Close.