Refund on deposit
CodyH
Member Posts: 1
I own a audio company that builds to order.
I recently had a customer cancel an order and need a refund. The customer made a 20% deposit. We were able to recover 71% of the deposit with the rest being unrecoverable.
Money was exchanged using international wire transfer, bank, not online payments.
No taxes were applied as it was an international sale of goods.
How do I process the refund to provide him with paperwork?
How do I do proper bookkeeping so its not a horrid situation come tax time?
I am located in Canada.
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Comments
I'm not a professional bookkeeper, so I'd wait for someone else to confirm, but you might be able to fix all this simply by creating a new invoice to that customer except use a **negative amount ** for the item(s) listed on the invoice? For example, if the refund total is $1000 then do an invoice to that customer for -$1000. It will show up on your books as a 'negative' sale.