You may not have the Invoices Module in your subscription, hence you are not seeing those options under 'Receive money'. May be you can look into and add invoices module, as it adds lot more values to than its cost.
However if you are trying to do make payment to that customer, as a refund, and not able to select that contact on the make payment window, you will have to mark that Contact as both the 'Customer' and 'Supplier'. If the contact is not marked as a supplier, the system does not allow to do make payment transaction, for that contact. Simply go to contact, select the contact and edit it, and tick the Supplier box, under the type of contact.
Further, you might want to seek accounting advice on what sort of entries to be done in your particular situation.
Hope this helps.
Thanks for the Update Rebecca,
Credit Note is the term used for New Zealand Books and is the same as Customer Adjustment note, which is used here is Aus, :-) So yeah the above video instructions will show you how to issue the money out of the bank.
Basically, when you save the Credit note, you will get the Issue refund Button on top right corner. Please click on it and follow the prompt.
Please note the below advice is a guide only, you should seek an accountant's advice on this too.
I believe your scenario here is little different to Rebecca.
You will not need to do Customer adjustment Note, on this situation because I believe you have already done issue a credit when you received the overpayment on the original invoice. In order to balance your bank reconciliation etc, you would have had to do the single transaction for invoice and receive money against it. Hence customer balance is doubled up as there are two refunds technically, $100 for issue credit, another $100 for Customer adjustment note.
In your situation, you have
1) Invoice for $100
2) Customer payment receipt for $200
3) And refund $100
Assuming you have done the transactions in above order, where you have received the Money and issued credit for $100 as shown below, you will need to refund the amount using Journal and link that refund to the invoice.
Please follow the below steps for the journal:
1) GO to add new Journal.
2) Accounts receivable Dr for the refund amount ($100 in your example)
3) Make sure you select the customer in the contact column.
4) Bank Account Cr
5) Save and close
Now what this does is create the refund of $100, but it is still not linked to the original amount of $200, that we have received for the original invoice.
1) GO to the original invoice for that contact.
2) Click on the blue hyperlink for the Amount under Already paid.
3) You will see the link for Receipt and date as shown below.
5) Click on the receipt link
6) You will now see the Receive Money window. And there should me a new line under ‘ALLOCATE THIS MONEY TO AN EXISTING TRANSACTION’.
7) Under ‘How Much to Allocate’ Column, enter the refund amount. i.e $100 in your example.
9) Click save.
This will now link that refund journal entry to the original invoice, and the customer balance will go to nil. Customer statement will look like this.
Glad you liked it.
Regarding your last question, again, it would be best to get your accountants involved.
However, in my thought, and, as per your situation, you are just refunding the overpayment, (Note: not the total invoice) so there won’t be any tax involved.
Refund is $100 which is basically the overpayment. There is no involvement of tax in overpayment and hence not in the refund.
Although the situation would have been different if ou were refunding the customer for the purchase. Like refunding the total invoice.