How Do I Refund Clients for Project Cancellations?

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When you terminate one of your clients, you need to refund their retainer as well as return some of the fees that have already been paid. The following procedure covers how to process refunds for cancelled projects:

  1. Click Projects on the navigation bar.

  2. Click a listed project.

  3. Click the Billing tab and select Transactions from the drop-down list.

  4. Click a listed transaction.

  5. Click the Refund Retainer. This button displays only when a client has a zero (or negative) balance.

  6. A confirmation message displays, select Yes.

  7. This will take you to the EO_Payments file. Click the Done button at the bottom of the layout. You will now see that the Retainer balance is $0.

  8. Now you need to apply the credit for your fees since they have already paid you. Select New from the Action drop-down list in either the Projects-Billing -Transactions or Contacts -Transactions screen.

  9. You will be taken back to the EO_Payments file and the Client > Payments layout. In the Payment Type section, choose Credit. Enter in the Amount to be credited in the Amount field.

  10. On the Contacts-Projects portal, below the Amount to Apply field, click Apply.

  11. Click Done.

  12. Select an account to which to allocate the credit.

  13. Select the Account Code (that is, Client Fees) and click OK. A negative balance should display.

  14. Go to the billing contact for this project. In the Contacts -Billing and Contacts- Transactions screen, you will see the negative balance in red at the bottom of the layout with the Refund button next to it. Click Refund.

  15. You will be prompted to issue a full refund, click Full. This will take you back to the EO_Payments file.

  16. Click Done.

You should perform an export to your Accounting package. When you do this, you will notice that the Retainer amount was debited to your Suspense account. Another entry will credit the Client Fees account (if that was what was used for the credit), and debit the Suspense account. You can now issue the client a check for the total amount that was debited to the Suspense account. This should zero out the Suspense account (assuming you had a zero balance to begin with).