Problem: A customer refund is required, but A refund to a customer can only be created from an unapplied customer payment (customer advance). If the original payment has already been fully allocated to invoices, no remaining customer advance exists, therefore the system does not allow creating a Bank Payment with Transaction Type = To Customer because no open customer documents are available. As a workaround, the refund was recorded using Bank Payment with Transaction Type = To Supplier, although the payment is related to a customer refund and not a supplier transaction.
Solution: The recommended approach is to adjust
If the original
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payment can be modified (e.g. the accounting period is open)
- An Invoice has been issued to the customer.
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If a full or partial refund is required and the system does not allow creating a Bank Payment with Transaction Type = To Customer, the original customer payment documents must first be adjusted.
Important: Removing the invoice allocation reopens the affected invoices. After completing the refund, verify that any remaining customer payment is allocated correctly and that customer settlements are accurate.
3. Open the original Bank Receipt document in the system. Cancel posting and unlink (delete) related Invoices from this document. This creates an unapplied payment amount in the system, making it available for refund processing.
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Generate report to check your actions.
Alternative settlement scenarios
If the original
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payment
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cannot be
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modified (e.g. the accounting period is closed)
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These methods are applicable only if the customer and supplier are the same business partner is registered in the system as both a Customer and a Supplier.
- Offset a Supplier Prepayment against an Invoice Received.
- Offset a Supplier Prepayment against an existing Customer Advance of the same business partner.
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Please refer to Mutual Settlement (Mutual Settlement Type) for detailed instructions.
Verify that:
- customer balance is correct;
- refunded amount is reflected;
- remaining invoices are allocated correctly.
Thank you for being a FirstBIT customer!
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