How to issue a refund.

[Wozcreative]

So I have to issue a refund for a client that had paid me in late 2011. The project never went through and only minor work was done. I offered to issue a refund. We are both in Ontario, Canada. Do I need to request anything from him? Essentially this is a refund he has to give back to HIS client.

Should I be requesting an invoice of some kind or just write it down in my own notes? Feedback would be appreciated!

FYI this is for design services.

[vangogh]

Wow. I'm amazed you'd be giving a refund for something done so long ago. I usually ask for non-refundable deposits to begin a job. But since you are giving a refund I assume this is just you paying by check of similar and not an actual refund of the original payment through a credit card company. I would definitely ask for a receipt. Odds are you won't need it for anything, but who knows. What if a few months from now the client insists he or she never received the refund. If you have a receipt that you gave back what you owed they can't come after you looking for more. Definitely get some kind of paperwork to show you returned the money.

[jamesray50]

I would issue a Credit Memo. If you are using an accounting program there should be a Credit Memo form that you can use. If not, Google for one or create one. Apply to refund to the client's invoice to remove the receivable on your books. Then depending on how they paid you, refund them the amount in the same way (check, credit card, etc.). Make a note on the Credit Memo the date and method of the refund. I personally would not request anything from the client, you will have a cancelled check if paid by check, or you bank statement or merchant card statement will show that you refunded the money. If they claim they didn't receive it, you can always stop payment and reissue. Hope this helps and good luck.