Refund Processing

To refund a payment tracked in SailingClubManager (SCM), you must manage two distinct steps: reversing the funds via the payment method used and recording the transaction accurately in both SCM and your ledger package (QuickBooks, Xero, etc.).

Step 1: Issue the Actual Refund (By Payment Method)

Because SCM acts as a management system rather than a direct financial vault, the transfer of actual money back to the member must be initiated through the payment gateway dashboard or handled manually.

For Electronic Payment Gateways

• Stripe: Log into the Stripe Dashboard. Locate the transaction on the Payments page, click the overflow menu (...), select Refund payment, choose a reason, and submit. Note: Stripe processing fees from the original transaction are not returned.
• GoCardless: Navigate to the Payments tab in your GoCardless Dashboard. Locate the specific payment, click the three dots, and choose Refund payment. GoCardless recommends waiting at least 7 days after the original charge to avoid late-failure conflicts.
• PayPal: Access your PayPal Business account, locate the activity under your transaction history, click the payment, and click Issue a refund.

For Other Payment Methods

• Cash / Cheque: Physically hand over the cash or issue a paper cheque written out to the member.
• Zelle / Venmo: Open your banking app or the Venmo platform and issue a direct electronic transfer back to the member's account or phone number.

Step 2: Adjusting SailingClubManager (SCM)

SCM operates under a Full Audit Trail policy. Do not edit or delete the original invoice or the original payment entry, as doing so breaks data integrity and disrupts ledger synchronization.

1. Create a Credit Note: Generate a new, separate credit entry or negative invoice line item within the member's sales ledger to match the refunded amount.
2. Map to the Correct Gateway Account: Ensure the adjustment is recorded against the specific sub-account assigned to that payment method (e.g., your designated Stripe Clearing Account, Cash Account, or Main Bank Account) so your internal SCM bank logs balance correctly.

Step 3: Ledger Adjustments (QuickBooks or Xero)

When SCM or your payment gateway syncs to your accounting software, you need to ensure your bank feeds and accounts receivable match perfectly.

In QuickBooks Online (QBO)

1. Click the + New icon and select Refund Receipt.
2. Select the Customer name and choose the appropriate Payment Method (Stripe, Cash, Check, etc.).
3. In the Refund From dropdown, select the exact bank or clearing account where the money left.
4. Add the product/service item being refunded, enter the amount, and save.
5. For Bank Feeds: When the negative payout matches your bank feed (e.g., Stripe deducting the refund from your next payout), match it to this Refund Receipt. Account for processing fees by creating an expense entry mapped to a "Bank/Merchant Fees" category.

In Xero

1. Navigate to Business > Invoices and click Add Credit Note.
2. Issue the credit note to the member for the required amount.
3. Scroll down to the Receive a Cash Refund section at the bottom of the credit note page.
4. Enter the date of the refund and select the specific bank or gateway account the funds were paid out from. Click Add Refund.
5. When the transaction shows up on your Xero Bank Reconciliation screen, match the bank statement line directly to the cash refund entry you created on the credit note.

Last updated 09:19 on 4 October 2026