How do we make a refund?

We have successfully completed our first trial order cycle. All has gone well, but we had less stock of one item than anticipated. This means that some customers have paid us more than they should have done. How can we give them a refund and record this in OFN?

Alternatively, if they don’t want a refund can we leave the credit on their account? Will this reduce how much they have to pay next time they get to the checkout?

On a related point we gave some of the customers half a unit of the product (we split a unit between two of them). OFN doesn’t seem to allow us to record 0.5 as a quantity. How can we deal with this?

Thanks for your help!

William

Hi William,

Both refunds and account credit are possible. It depends on the payment method used and your accounting system as to the best options. Perhaps @SaraR can describe how they do this with Tamar Valley and @olivermuller could explain how they do this with StroudCo.

Regarding the half units - the best way to do this would be to create a variant for the half unit. OFN does not enable 0.5 units but does handle a range of units if you create them. If you are using OFN for stock management this is the best option. If you are not you could simply reduce the price of the unit on the customers invoice to the value for the half unit.

Hope that helps.
Lynne

Hi William,

OFN is obviously not trying to be a full accounting system, so there are limitations and as far as I know, if someone has a credit, OFN won’t deduct the balance from the next order. But correct me if I’m wrong.
If you are using Stripe, you can log into Stripe and give a refund but it won’t feed this back to OFN. I have no experience with doing invoicing and credits/refunds on OFN.

What I do is I run Quickbooks online as our finance software and any credit, refunds etc would be reflected on here.

Hi @Lynne.OFN.Tech and @olivermuller,

Thanks for your replies. I managed to figure this out myself. I’ve written the details below in case it helps anyone else.

As you said, OFN doesn’t give a credit next time a customer orders so you need to refund the customer directly. We are using Stripe and it is possible to issue a refund or give a partial refund through Stripe. Details here: Refunds. Please note that the refunds can only be made if you have funds available in your Stripe account. If you have the money paid into your bank account daily (like we do) then you may not have any available funds until the next order cycle so this may delay the refund. Alternatively, I guess you could refund the money directly to the customer with cash or by bank transfer.

I’m not sure how important it is to record the refund in the OFN system, but I wanted to do this so that the customer’s account wasn’t showing a credit. It isn’t obvious how to do this but it is possible - basically you need to create a new payment with a negative amount.

The steps are as follows:

  • view the orders
  • you can identify the orders that have a credit as they will show ‘Credit Owed’ under payment state
  • click on ‘Credit Owed’
  • you will see how much money that customer is owed from that order
  • click on ‘New payment’ (blue button in the top right)
  • the amount will appear as a negative
  • select ‘bank transfer’ as the payment method (it is not possible to choose Stripe)
  • click ‘update’
  • the payment status will be shown as ‘Checkout’
  • click on the tick to ‘capture’ the payment
  • the payment status should now show ‘Completed’

Thanks so much for sharing @wmortada!