Refund payment applied to an invoice

Overview

ServiceTitan's automated refund workflow simplifies creating and processing refunds. Not only is it more efficient, automated refunds ensure GL accounting is correct.

Things to know

• 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

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

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

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

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

• If you are using ServiceTitan Payments, you should follow that refund process.

• This guide accounts for the refund in ServiceTitan. The refund to your customer must be processed using the method it was collected, either by check, credit card or ACH. All refunds must be exported to your accounting software.

• An adjustment invoice with a positive invoice item on the refund adjustment invoice will give your invoice a negative balance. To clear your balance, create another adjustment invoice on the refund adjustment invoice with a negative quantity to the invoice item. Then, unapply and reapply the payment on the initial invoice.

Refund payment applied to an invoice

1. Search for and go to the invoice to which you want to issue a refund.

2. Locate the payment you want to refund in the Payment section of the invoice.

3. Click the Refund icon. 

4. On the Refund for Payment opens, select Refund Reason.         

   Note: The reason selected will determine the refund records created. All options will create a negative payment record. The Customer Complaint and Billing Error will also create a negative adjustment invoice to account for the reduction in revenue. If you require a negative adjustment invoice for the Other option, you must create it manually.

5. Select a Refund Amount.        

   1. If you want to refund a specific amount, select Amount and enter a dollar amount or percentage.                 

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

   2. If you want to refund an item on the invoice, select Invoice Item.
      
      From the dropdown, select the Invoice Item you want to refund and enter a dollar amount or percentage for the refund amount.                 

      Tip: You can add or delete items using Add or Trash .

      Note: You can only add items from the original invoice that are non-inventory. Negative inventory cannot be added and refunded in ServiceTitan.

6. Select a Refund Method.        

   1. Process through ServiceTitan: Select this if you want to issue a refund for this customer directly back onto the card you processed the payment from within ServiceTitan.                

      Note: This option is only available if you have ServiceTitan Payments enabled.

   2. Cut check in Accounting Software: Select this if you are issuing a check from a different accounting software but you want to record the refund in ServiceTitan.

   3. Process credit card refund outside of ServiceTitan: Select this if you are processing the credit card refund outside of ServiceTitan but you want to record the refund in ServiceTitan. 

7. When you're done, click Save.

8. Review the Refund Record for accuracy.         

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

9. When you're done, click Save.

10. Click Process Refund. A confirmation notification appears. 

11. Refresh the invoice page to confirm refund status.         

    Tip: You can also see the refund in the Adjustment and other Job Invoices section of the original invoice.

    Note: The refund record created varies depending on the refund reason. Negative payments are always created, regardless of refund reason. Negative payments are not linked to the negative invoice. You can confirm negative payments from the original invoice.

Want to learn more?

• Visit the Academy and enroll in Refunding a Payment on an Invoice

• See Apply available credit to an invoice

• See Delete or edit a payment credit

• See Edit or delete a refund