Voids, Write-offs, Adjusts to an Invoice, and Refunds in Service Minder
There are times when a customer does not wish to use some or all of the services they have purchases which may include a payment plan. This section will explain how to deal with those scenarios.
Non Payment Or Customer Cancels
If you got too much money and need to give some back but you still expect to get paid in full – do a Refund.
If a customer cancels so you’ll never get paid the balance? Do a Write-off on the balance.
Need to give money back <and> you’ll never get paid for the balance, Do a refund with a write-off. If it’s different amounts, you’ll have to do that in two steps – refund first, write-off second.
Technical note: depending on the credit card processor, you may need to wait five minutes between multiple refunds to the same customer or you will get a 'duplicate' error report.
Giving someone a referral credit? Create a Credit Memo (see below).
Use the Invoice Reconciliation Report to check your work:https://serviceminder.io/Reporting/InvoiceReconciliation
Reversing an Invoice Created in Error by Using Void
OR Getting Rid of a Credit Memo Not Needed
This is good for times when you create a credit memo, and then don't need it. A case might be when you offer a referral credit, but then send the customer a check instead.
There is no Delete button for an Invoice in our CRM. The practice of deleting an invoice will not leave an audit trail, which will create a theft opportunity. Do not use void in a different accounting period (month) in which the invoice was created.
To reverse an invoiced transaction, bring up the invoice and click the Edit button. Once there, click the Void box and other relevant information. Then Save.
It will present, “Do you want to Cancel the remaining appointments?” Select Yes.
Creating a Credit for a Future Invoice or Proposal
From their contact details, press the invoice button:
Then change the type to "credit memo":
Once you create the credit memo, go to their open invoice, click the pay button and apply that credit memo to their invoice.
Tax on Refunds
Service Minder by design does not create tax by default on a refund. This is due to the fact that in a refund the system does not know how much of a refund is taxable, e.g., some lines are and some are not on the invoice, which ones are being refunded? In other words, if a partial (so not the full amount) refund is issued on an invoice where only some of the lines are taxable, we don't have a way to track how much of that refund is tax because we don't know which lines are being affected by that refund.
The take-away is that when doing a refund you must _manually_ adjust the tax (credit) before hitting refund.
(Reviewed for updates on 12/24/24)