Cancel vs Refund Invoices
- 09 Oct 2024
- 1 Minute to read
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Cancel vs Refund Invoices
- Updated on 09 Oct 2024
- 1 Minute to read
- DarkLight
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Cancelling a paid invoice will automatically add the value of the invoice to the customer's ledger. The amount added to the ledger will automatically be used to pay for their next invoice.
For example, if you cancel a $100 invoice, the customer's ledger will be -$100. This negative ledger means that your space owes $100 to the customer and this amount will be deducted from their next invoice.
Refunding an invoice paid using one of our integrated payment gateways automatically sends back the amount paid by the customer to their account via the same gateway.
For example, if you refund a $450 invoice that was paid using Paypal, the customer will receive $450 via the same Paypal account they used to pay for the invoice.
If you refund an invoice paid using a manual payment method (check, cash, etc) in Nexudus, you need to manually issue the refund as well.
For example, if a customer paid their invoice via a bank transfer, refunding the invoice in Nexudus won't return the funds to the customer's account until you manually process it outside of Nexudus.
The difference between cancelling and refunding is that cancelling creates a credit that the customer uses at a later date while refunding sends back the funds to the customer's bank account straight away.
Both options always generate a credit note to account for the transaction in Nexudus.
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