📝 Overview
There are situations where a payment made against an invoice needs to be backed out without reversing the entire invoice. This article walks through three common scenarios where this may apply:
Scenario 1 - Incorrect Payment: A payment was made in error and needs to be reversed and re-entered correctly.
Scenario 2 - Moving a Partial Payment: A partial payment was made against one invoice and needs to be moved to a different invoice (common with rentals).
Scenario 3 - Non-Refundable Deposit: Retaining a Forfeited Payment: A customer made an initial payment toward an invoice but will not be completing the purchase. The facility is keeping that payment, and the remaining balance needs to be cleared.
Follow the steps in the scenario that applies to your situation.
🔄 Scenario 1: Reversing an Incorrect Payment
Use this process when a payment was made in error and needs to be reversed and re-entered.
Click the arrow to learn how to reverse an incorrect payment
Click the arrow to learn how to reverse an incorrect payment
Open the invoice where the incorrect payment was made.
On the right side of the invoice, locate the Add Payment field and enter the original payment amount as a negative number. For example, if the customer paid $100, enter -100.
Click the Add button. The negative amount will appear in the shopping cart.
Click Check Out. Keep the payment type the same as the original payment.
Enter a payment note explaining why the payment is being reversed. Do not send the receipt.
Open the invoice again and re-enter the correct payment. Proceed through check out as usual.
📦 Scenario 2: Moving a Partial Payment to Another Invoice
Use this process when a partial payment needs to be transferred from one invoice to a different one, such as when updating a rental invoice.
Click the arrow to learn how to move a partial payment to another invoice
Click the arrow to learn how to move a partial payment to another invoice
Create the new invoice for the rental at the correct amount. In the shopping cart, set the Cash Received field to $0 so the invoice reflects the full amount owed.
Open the original rental invoice. On the right side of the invoice, enter the original partial payment amount as a negative number in the Add Payment field.
Click the Add button. The negative amount will appear in the shopping cart.
Navigate to the new rental invoice. You can do this by clicking Invoices to view all invoices for the customer, or by clicking the Make Payment button on the customer profile page.
On the right side of the new invoice, enter the same amount the customer originally paid in the Payment field.
Click the Make Payment button. This amount will appear in the shopping cart as a positive number.
Your shopping cart should now show both a negative and a positive amount that cancel each other out. Click Check Out.
The shopping cart total should be $0. Add a payment note referencing the original payment date, the original invoice number, and that a new rental invoice is being created. Do not send the receipt. Click Process Checkout.
💰 Scenario 3: Retaining a Forfeited Initial Payment
Use this process when a customer made an initial payment toward an invoice but will not be completing the purchase, and the facility is retaining that payment rather than issuing a refund.
Click the arrow to learn how to handle a non-refundable deposit
Click the arrow to learn how to handle a non-refundable deposit
Create a new product that will offset the deposit amount the facility is keeping. For example, if the customer paid a $100 non-refundable deposit toward a $500 invoice, create a product priced at $100 and name it something like "Non-Refundable Deposit Write Off." Click below to learn how to create a product.
Open the invoice where the deposit was applied. On the right side of the invoice, enter the deposit amount as a negative number in the Add Payment field (e.g., -100). Click Add.
The negative amount will appear in the shopping cart.
Locate the new "Deposit Write Off" product you created and add it to the shopping cart. This will balance the cart to $0. Click the Checkout button.
Enter a payment note stating that this is a non-refundable deposit that will be retained by the facility. Do not send the receipt. Click Process Checkout.
Return to the customer profile page and click the Make Payment button. Locate the invoice where the deposit was originally applied and open it.
Click the three-dot menu icon next to each line item and click Reverse. This must be done individually for each line item on the invoice.
✍️ Note: if this is a booking invoice, line items cannot be reversed using this method.
Enter a payment note indicating that you are reversing the invoice, that the customer paid a non-refundable deposit on a specific date, and that the deposit has been moved. Do not send the receipt.
Set the Cash Received field to $0, since no payments are currently applied to this invoice. Click Process Checkout.
The invoice will be fully resolved with no remaining amount due.
💡 Pro Tips
⚠️ Always add a payment note - Document the reason for every reversal, including the original invoice number and date. This creates a clear audit trail and helps avoid confusion later.
📌 Do not send receipts during reversal steps - Sending a receipt mid-process can confuse customers. Only send a receipt once the final transaction is complete, if applicable.
🧠 Verify your cart balance before submitting - Any time a reversal is involved, confirm the shopping cart total shows $0 before clicking Submit to avoid creating unintended balances.
❓ Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
Click the arrow to view frequently asked questions
Click the arrow to view frequently asked questions
Can I reverse just part of a payment rather than the full amount?
Click the arrow to see the answer
Click the arrow to see the answer
Yes. When entering the negative amount in the Add Payment field, you can enter any partial amount. It does not need to match the full original payment. Just ensure your cart balances correctly before submitting.
What payment type should I use when reversing a payment?
Click the arrow to see the answer
Click the arrow to see the answer
For Scenario 1, keep the payment type the same as the original. For Scenarios 2 and 3, the cart should balance to $0, so no specific payment type is required at the reversal step.
Will the customer be able to see these reversal transactions?
Click the arrow to see the answer
Click the arrow to see the answer
Reversal entries do appear on the invoice history. This is why adding a clear payment note at each step is important. It ensures the record is easy to understand for both staff and customers.