💳 When to Use a Refund
Use a refund when money needs to be returned to the customer’s original payment method.
1. A Service Was Not Delivered
Scenario: A customer was billed for GPU service but never used it.
Action: Use the Correction button to edit the invoice, change the GPU quantity from 1 to 0, then process a $100 refund.
Result: A credit refund invoice is created with a CR prefix.
2. The Customer Requests Money Back
Scenario: A customer overpaid and asks for the excess to be returned.
Action: Apply the exact invoice amount, then refund the remaining balance.
Result: Funds are returned to the original payment method and recorded in both AR and GL.
3. The Payment Has Already Been Captured
Scenario: A transaction processed through X1‑Pay has already been captured and can’t be voided.
Action: Process a refund in X‑1FBO.
Result: The refund is completed and reconciled in the disbursement report.
🧾 When to Use a Credit Memo
Use a credit memo when the customer prefers a credit on account or when no cash needs to be returned.
1. Customer Wants Credit for Future Use
Scenario: A customer overpays but prefers the balance be applied to future invoices.
Action: Apply the invoice amount and use Credit on Account for the remainder.
Result: The credit memo is saved to the customer’s account and can be applied later.
2. Invoice Needs Adjustment (No Refund Required)
Scenario: A billing error is corrected, but no money needs to be returned.
Action: Adjust the invoice and generate a credit memo.
Result: The credit offsets future charges and appears in AR.
3. QuickBooks Online Sync Considerations
Scenario: A refund processed in X‑1FBO needs to sync to QuickBooks Online.
Action: Process the refund in X‑1FBO.
Result: The transaction syncs to QBO as a credit memo tied to the original invoice, keeping records aligned.
❗ System‑Generated Credit Memos
X‑1FBO will automatically create a credit memo when:
An invoice is in Processing status
The payment transaction is voided
The invoice itself is voided, resulting in a Cancelled status
Important: Invoices in a Processing status have not yet pulled funds from the customer’s account. Typically, a temporary hold exists until the invoice moves to Processed, at which point funds are drafted.
⚠️ Special Case: Overpayments
Scenario: A customer attempts to pay more than the invoice total.
What Happens: X‑1FBO does not allow overpayments.
Action: Apply the exact invoice amount and use Credit on Account for any remaining balance.
Result: Prevents reconciliation issues and keeps AR clean.
Need more help? Contact X‑1FBO Support for further assistance