How Do I Create a Credit Note and Process a Refund as a Prepayment, Then Apply It to Another Invoice? (New Version)

Easily handle customer refunds by issuing a credit note as a prepayment and applying the balance to future invoices.

1. Click on Sales Invoices

2. Click on a sales invoice

3. Click on Payments

4. Click on Add Payment

5. Fill in the payment details

6. Click on Save

7. Click on Refund

8. Choose Prepayment as the payment method

9. Choose Refund as the reason

10. After filling in the details, click on Confirm

11. The refund as been processed as a prepayment

12. Click on the Ref No.

13. Click on the Payee's Name

14. Click on the Prepayment tab

15. Click on the three-dot menu

16. Click on Receive Payment

17. Select 'Knock Off Invoice' as the payment type

18. After filling in the details, click on Next

19. Select the invoice to apply it to

20. Click on Save

21. Click on the other invoice that the payment has been applied to

22. Click on the Payments tab

23. The payment has been applied to another invoice