Refunding a donation

Hi rgh, thanks for your post - you can record the donor refund in three parts as listed below: 

Step 1 - Create a credit note

1. Select + New and select Credit note.
2. In the Customer field, select the appropriate donor.
3. Enter the Credit Note Date, Amount, Tax, and Product/Service.
4. Select Save and close.

Step 2 - Create an expense (to show the money leaving your bank account)

1. Select + New and select Expense.
2. In the Payee field, select the donor.
3. In the Payment account field, select the bank the money is being refunded from.
4. In the Category field, select the Debtors account (Accounts receivable).
5. In the Amount field, enter the amount of the refund.
6. In the Tax field, select the appropriate Tax (not inclusive/exclusive of tax).
7. Select Save.

Step 3 - Link the credit note to the expense

1. + New and select Receive payment.
2. Add the Donor and choose the Payment method and Deposit to.
3. The balance should be 0 as they will cancel each other out.
4. Select Save and close (if you have Online Banking, go to your banking page then match the record found).