Invoices with an incorrect amount may get synced and paid through Wise-Pay. In such cases, you will have to process an appropriate refund to the payer to settle the extra amount paid. It is important to note that processing a refund to a payer would reduce the revenue from that payer. The account settlement process involves activities in ConnectWise, accounting package (such as Xero), and Wise-Sync.
Note: As any applicable surcharge such as credit card processing fee cannot be recovered, a refund should be processed as a last resort. In the case where surcharges have been collected and refunds are to be processed, partners should ensure that the refund policy clearly states that surcharges are not refundable.
Let us assume that you synced an invoice of $800 for ‘XYZ Company’ to Xero. You paid the full amount through Wise-Pay. The financial transaction now appears in the Past Payments pod in Wise-Pay. You then realized that the invoice was incorrect and the amount should have been $600 instead of $800. You need a process to settle the accounts and process a refund of $200 for ‘XYZ Company.’
The following diagram describes the steps involved in correcting accounts and issuing a refund:
The first step is to remove payment from the invoice in Xero. When you sync payments using Wise-Pay, the payment is adjusted to 0 for this invoice in ConnectWise. Follow these steps:
1. Log in to Xero and search the incorrect invoice for which a refund is required.
2. Click the Payment link on the invoice to see the Transaction: Payment page.
3. Select Options > Remove & Redo to remove the payment from the invoice.
This should remove the payment, and you should see the appropriate success message.
4. Log in to Wise-Sync and sync payments to change the payment of the invoice to 0. If you don’t sync payments, the payment for the invoice will still be $800 (in our example).
Create a credit memo in ConnectWise and Sync
The next step is to create a credit memo in ConnectWise and sync invoices so that the credit memo appears in Xero, where it can be applied to the invoice. Follow these steps:
1. Log in to ConnectWise and navigate to ConnectWise > Finance > Special Invoices > Invoice Type, and click + to create a new invoice.
2. Select Credit Memo from the Invoice Type drop-down.
3. Enter the correct company name and the invoice amount ($200 in our example).
4. Click Save to save the credit memo.
5. Go to Wise-Sync and sync invoices to sync the credit memo to Xero.
You should see the Xero link for the credit note.
Apply credit note to the invoice in Xero
In this step, you will apply the credit note to the invoice in Xero to correct the outstanding payment for the invoice. Follow these steps:
1. Click the Xero link to open the credit note in Xero.
2. Select Credit note Options > Allocate credit.
3. In the Allocate Credit Balance screen, specify the credit against the invoice, and click Allocate Credit.
You can now view the invoice to ensure that the amount has been adjusted by applying the credit note.
Apply the credit note to the invoice in ConnectWise
As only payments are synced back from Xero to ConnectWise, you need to manually apply the credit note in ConnectWise to keep the outstanding amount consistent for the invoice in Xero and ConnectWise. Follow these steps:
1. Search and open the invoice in ConnectWise.
2. In the Credit and Payments section, select Credit from the Apply a drop-down.
3. Click the Apply Credit From drop-down.
Connectwise displays a list of credit memos for this company. Select the credit memo that you created.
4. Click Save to adjust the invoice balance ($600 in our example).
Receive a payment in Xero and sync payments
As you have removed the payment from the invoice, you need to receive the correct payment to settle the account. The received payment would then be synced back to ConnectWise through Wise-Sync. Follow these steps:
1. In Xero, search and open the invoice and go to the bottom end of the Invoice screen.
2. In the Receive a payment section, enter the correct amount ($600 in our example) and the date. Ensure that you have selected the Wise-Pay Clearing Account in the Paid To drop-down.
3. Click Add Payment to receive a payment for this invoice.
4. Go to Wise-Sync and sync payments to reflect the payment in ConnectWise.
Process a refund through IntegraPay console
The last step is to manually refund the overpaid amount to the payer. Use your payment processor account such as IntegraPay to complete this step. Follow these steps to process a refund through the IntegraPay console:
1. Log in to IntegraPay.
2. Search the transaction and click Refund to refund an amount for that transaction.
3. On the Refund Transaction screen, click Partial Refund, and specify the amount to refund ($200 in our example).
Note: Ensure that you have deducted the surcharges paid while processing the incorrect invoice.
4. Enter your email in the Email Receipt To text area and click Refund Transaction to refund the amount.
IntegraPay automatically adjusts the next invoice with the refunded amount.
Note: The above-listed steps are different for different payment processors. Use the appropriate documentation to know more about the payment processor used.