Applying a refund to an invoice in Dubsado does not initiate a transfer of funds back to your client. But, it's still important to record any refunds issued on your invoices!
In this article
Step 1: Issue the refund
Since all payments on Dubsado invoices are handled by your connected payment processor, it is not possible to initiate a refund from a Dubsado invoice.
Follow the instructions specific to the payment processor that processed the payment to issue a refund to your client:
⚠️ Heads up! The links above are provided as a courtesy. Dubsado is not able to provide support related to your payment processor. Please reach out to the processor directly with any questions related to issuing a refund to your client.
Step 2: Record the refund in Dubsado
After issuing the refund through your payment processor, the Dubsado invoice will need to be manually updated. Applying the refund takes just a few clicks!
Open the invoice that you refunded.
Click Apply and then Refund.
Enter the date, method and amount of the refund issued.
Optionally, add Refund notes that will be visible to your client on the refund receipt and/or a Transaction description that will only be visible to you in your transactions.
Click Apply and the refund will be recorded on the invoice.
Refunds are applied to the invoice as a whole, distributed evenly across all income categories on the invoice.
Refunds are recorded under Reporting >> Transactions and accounted for in your Income under Reporting >> Chart of Accounts. The gross revenue in this section will be your total income minus any refunds. Refunds are also accounted for in income category totals.
Step 3: Send a refund receipt
Applying a refund generates a refund receipt that you can manually send to your client. The refund receipt will include the Refund note to your client if you entered one. Clients can also navigate back to the original invoice.
You can view and send refund receipts from the Refunds tab. Click on the three dots next to the refund to open the receipt in a new window or send it via email to your client.
👋 Here's a tip... the default email used to send refund receipts can be customized under Templates >> Canned Emails >> Edit Templates >> Send Refund.
Sending a refund receipt is completely optional. Invoices with refunds automatically include a link that your client can use to view the receipt.
FAQ
I applied a refund. Why didn't the invoice total or balance change?
The invoice reflects all of the goods or services that were provided to your client. Applying a refund doesn't change which goods or services were provided, and that's why the invoice total and remaining balance are not affected when a refund is issued.
Your income shown under Reporting >> Chart of Accounts will accurately reflect your income minus any refunds. On an individual invoice, you can subtract the refund amount from the total payments to calculate the net income for that invoice.
If I connected QuickBooks or Xero to Dubsado, will refunds automatically sync over?
No, applying a refund in Dubsado does not apply a refund in your connected accounting application.