Customer refunds
Pay money back to a customer from available credit, an overpayment, or an unused deposit, choosing the paying account and method — never as an expense.
- Plans
- Core and above
- Availability
- Rolling out in prelaunch
- For
- Owners, Bookkeepers
- In KontoCore
Sales → Customers → (customer) → Refund · also from a credit memo, overpayment, or deposit
Built – unverified (prelaunch). Human certification pending.
In plain English
A refund sends back money the customer has on account with you. It reduces what you hold for them and your bank balance.
What this does
A refund must come from a real refundable source: an open credit memo, unapplied payment, payment overage, or unused customer deposit.
The refund cannot exceed the available amount on the selected source.
Before you start
- Confirm the customer has available credit (shown on the customer and on statements).
How to
Issue a refund
- 1Open the customer and choose Refund (or Refund from a credit memo, payment, or deposit).
- 2Select the source and amount, up to the available balance.
- 3Choose the paying bank/cash account, method (check, transfer, card, cash), date, and reference.
- 4Post. When the bank line imports, Match it to the refund.
Statuses and lifecycle
| Status | Meaning |
|---|---|
| Posted | Credit reduced and payment recorded. |
| Voided | Reversed; the refundable amount is available again. |
Corrections, voids, and reversals
- Void the refund to reverse it; the original credit, overpayment, or deposit becomes refundable again.
- Card or bank refunds processed outside KontoCore must also be reversed there.
Audit trail
- Every create, post, void, and reversal records the user, time, and reason, and links to the source record.
Availability and provider notes
- Built – unverified: this workflow exists in the prelaunch product but has not yet completed human certification. Review results before relying on them.
- Recording a refund does not move money. Sending funds electronically requires a payment provider or your bank.
Permissions
- Owners, administrators, and users with bookkeeping permission can create and post. View-only users can read but not change records.
What happens in your books
Refunding $150 of customer credit from checking:
| Account | Debit | Credit |
|---|---|---|
| Accounts Receivable (customer credit) | 150.00 | |
| Checking | 150.00 |
Common mistakes
- Recording a refund as an expense, which understates revenue and leaves the credit open.
- Refunding and also categorizing the bank debit separately.
Troubleshooting
Amount rejected
It exceeds the available balance on that source.
Related articles
Credit memos and customer creditIssue credit memos for returns, discounts, or billing errors, apply them to open invoices as customer credit — without editing the original invoice. Cash refunds use the Customer refunds workflow.Customer payments and depositsReceive customer payments against one or more invoices, handle partial and over-payments, group them into bank deposits, and match deposits to bank lines.Customer deposits, prepayments, and retainersRecord money received before you invoice as a customer deposit liability, apply it fully or partly to later invoices, and refund any unused balance.Customer statementsProduce a customer statement for a date range or as-of date showing opening balance, invoices, credits, payments, refunds, write-offs, and ending balance.
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Last reviewed October 6, 2026