How to create a refund in MYOB

There has to be a sales return for the customer before you can refund anything. That might be a credit note you created for goods returned or a service not used, or the credit MYOB made when the customer overpaid. If the return doesn't exist yet, create it first.

Check how the customer paid in the first place. If they paid an invoice through MYOB's online payments, the refund must go back to the same card, as a credit, and can't be made in cash or by cheque. To process one of those, submit a support request from My Account: log in at myaccount.myob.com and click Contact support.

Know which account the money is coming out of. MYOB only lets you allocate a refund to a cash or cheque account.

1. From the Sales menu, choose Sales returns and credits. The returns listed are the ones still waiting to be credited or refunded.
2. Find the return you're paying back and click Refund. The Record customer credit as refund page opens with that return's details.
3. Check that the Date, Reference and Refund amount are right.
4. In the Bank account field, select the account the refund is paid from.
5. Leave the Description of transaction as MYOB filled it in, or edit it.
6. Click Record. MYOB takes the refund amount out of the account you selected.
7. Get the cash or cheque ready and send it to the customer. Repeat these steps for any other returns you're refunding.

Recording the refund settles the sales return, so the credit you owed the customer has been paid back rather than left to apply to an invoice. The bank account you chose shows the refund as money going out.

Keep in mind that MYOB records the refund but doesn't send the money. Paying the customer, by cash or cheque, is a step you take yourself once the refund is recorded.

If you use AccountRight on the desktop, open the Sales Register from the Sales command centre, go to the Returns & Credits tab, select the credit and click Pay Refund. A refund cheque for the credit appears in the Settle Returns & Credits window. Choose the bank account in the Account field, change the date or other details if you need to, select Cheque Already Printed if you've already written the cheque, choose a Remittance Advice Delivery Status, then click Record. To change a credit after it's been settled, reverse or delete the transaction and enter it again.

AccountRight on the desktop can also pay a refund electronically, through a workaround, because a customer card can't be used for electronic payments. You give the customer a supplier card with their bank details on its Payment Details tab, and set up a holding asset account with the Bank account type. Pay Refund then puts the refund into that holding account. A Spend Money transaction with the Electronic Payment option, made out to the supplier card, moves it on to the electronic clearing account. Once your bank processes the electronic payment file you upload, the refund lands in the customer's bank account.