Refund an unapplied payment or customer credit

Overview

You can use the automated refund workflow to refund unapplied payments or customer credit.

ServiceTitan’s automated refund workflow simplifies creating and processing refunds. Not only is it more efficient, automated refunds ensure General Ledger (GL) accounting is correct.

Things to know

• This workflow only applies to payments not yet exported.

• Refunds can be for the full or partial invoice amount.

• You can choose the refund method: check, credit card, or ACH.

• You must have the Automated Refund Workflow enabled to perform this workflow.

Best practices

• As you’re creating a refund, hover over the Info icons for additional details.

• Use default options when you set up refunds to ensure accounting entries are handled correctly.

Use cases

Common reasons for creating a refund:

• Job was not performed to customer’s satisfaction

• Incorrect amount was charged to the customer

• Job was canceled

• Customer has a credit balance  

• Customer overpaid

• You need to refund a deposit or partial payment for an incomplete job

Refund unapplied payment

You can refund a payment that has not been applied to an invoice:

1. Search for and open the Customer Record you want to refund.

2. Go to the Payments section and find the unapplied payment.
   

3. Click Actions and then select Refund Payment.
   

4. Enter Refund Information:

   1. Select Refund Reason.
      

      Note: If you can’t find an applicable refund reason, select Other and enter a reason. The reason will display in your payment report.

   2. Enter a dollar or percentage Refund Amount.

      Note: You can only refund up to the amount of an unapplied payment.

      

      Note: Depending on the taxable status of the refund, a portion of the refund is allocated to tax. If you mark the refund tax as nontaxable, tax does not affect the refund.

   3. Select a Refund Method.
      

5. When finished, click Save.

6. Review Refund Record for accuracy.
   

   Note: Click Advanced Options to add a memo for the refund record or to edit the refund date.

7. Click Save.

8. Click Process Refund.
   

9. A confirmation message appears notifying you the payment was successfully refunded.
   

Want to learn more?

• Visit ServiceTitan Academy to enroll in Payment Collections Feature: Setting Up & Implementing the Automated Refunds Workflow

• See Apply available credit to an invoice

• See Edit or delete payments on invoices

• See Edit or delete a refund