Refunds Guide

How to choose between customer and vendor refunds, when to use cash refunds, and how to create accurate refund documents from original sales or purchase documents.

Sales Purchasing End-User Guide

Overview

Refund documents reverse or correct part of a previous sale or purchase. The correct refund type depends on whether you are dealing with a customer or vendor, and whether the money is being returned immediately.

Customer RefundReverse a customer sale
Customer Cash RefundReturn money to the customer now
Vendor RefundReverse a vendor bill or supplier charge
Vendor Cash RefundRecord an immediate supplier cash refund

Refund Types

Refund Type Use It When
Customer Refund You need a customer credit-style refund document based on a previous customer invoice or sale.
Customer Cash Refund You are returning money to the customer immediately.
Vendor Refund You need to record a supplier credit or reverse a vendor purchase document.
Vendor Cash Refund You receive money back from the vendor immediately and want to record it as a cash-style refund.

Customer Refunds

Tab Path: Customers > Customer Refund
  1. Select the customer or start from the original customer invoice or sales document when available.
  2. Bring the related items into the refund so quantities, prices, and VAT are based on the original document.
  3. Review the refund reference, original invoice number, quantities, discounts, and VAT.
  4. Save the refund and print, preview, or send it as required.

Customer Refund documents are suitable when the business needs a formal sales reversal or customer credit document.

Vendor Refunds

Tab Path: Vendors > Vendor Refund
  1. Open the refund from the original purchase invoice when possible, or create it from the vendor side.
  2. Review returned items, costs, VAT, and references.
  3. Save the refund so the supplier-side reversal is recorded correctly.

Vendor Refund documents are suitable when a supplier issues credit or when a purchase document needs to be reversed formally.

Cash Refunds

Cash refund forms are used when the money movement is immediate.

Document Typical Example
Customer Cash Refund A walk-in customer returns an item and is refunded immediately.
Vendor Cash Refund A supplier immediately returns cash or an immediate refund amount for a returned purchase.
Important: Use cash refund forms only when the refund should be treated as an immediate money movement. If the amount should remain as a formal credit document, use the regular refund form instead.

Documents And Output

Refund forms in QBM can also work with supporting document controls and output actions.

  • Review the original invoice or bill number if the refund is linked to a prior document.
  • Use document notes and attachments when you need supporting approval or return evidence.
  • Save before printing, PDF, email, or other submission actions.
  • For customer-side electronic compliance workflows, save first before using e-invoicing actions where your setup supports them.

Best Practice

  • Create refunds from the original invoice or bill whenever possible to reduce manual mistakes.
  • Check quantities carefully, especially for partial returns.
  • Use the correct refund type: standard refund for formal reversal, cash refund for immediate money return.
  • Review VAT and discount values before saving.
  • Keep references clear so support and finance teams can trace the original document easily.