# Refunds paid back to clients

> Record money you returned to a client from their credit, send a refund receipt, and keep proof and history with each refund.

Source: https://docs.moodiri.com/invoices/refund-money-to-a-client

## Why use it

When you hand money back, you need a record that matches: how much, how, when, and proof it was sent. Recording the refund against the client's credit keeps their balance right, gives your client a numbered receipt, and keeps the check photo or transfer screenshot with it.

## When to use it

- **A client asks for their overpayment back.** Refund it from their credit.
- **Items were refunded as client credit and the client wants cash instead.** Refund that credit.
- **A project ended with money left over.** Return the remaining credit.

To refund items on a paid invoice in the same step, use [Refund items](https://docs.moodiri.com/invoices/refund-invoice-items) and choose **Refund to client**. For a retainer, see [Cancel or refund a retainer](https://docs.moodiri.com/financials/cancel-or-refund-a-retainer).

## Before you start

- Only the owner and admins can record refunds.
- The client needs available credit. See [Overpayments and client credit](https://docs.moodiri.com/invoices/overpayments-and-client-credit).
- Pay the refund first, outside Moodiri, and keep the reference.
- To email a receipt, the client needs an email address.

## Steps

1. Open **Financials** and find the credit under **Overpayments**.
2. On a credit with money available, choose **Refund to client**.
3. In **Record refund to client**, enter the **Amount**, choose **How was it refunded?** and set the **Refund date**.
4. Add a reference, a **Note to client** for the receipt, and an **Internal note** if you like.
5. Attach **Proof of refund** and tick **Email the refund receipt** to send it to your client.
6. Choose **Record refund**.

## Record the refund

The full field list and rules are in [Record a refund to a client from client credit](https://docs.moodiri.com/invoices/record-a-client-refund).

## Refund history per credit

On **Financials**, each credit has **View refunds**. Choose it to list every refund recorded from that credit, with its refund number and status: **Recorded** or **Voided**. Choose **Hide refunds** to close the list.

## Refund receipts: download, send and resend

Each refund has its own receipt. You find refunds on the invoice under **Refunded to client**, and in the credit's refund history.

- **Receipt** opens the refund receipt PDF.
- **Send receipt** emails it to your client. Once sent, the button reads **Resend receipt**.

## Attach proof to a refund

Add proof while recording the refund, or later with **Attach proof** on the refund. Use a photo of the check, a transfer screenshot or a PDF. Tick **Share with client** when you add it during recording to show it in their portal.

## What happens next

- Moodiri confirms with **Refund recorded.** and the credit's available balance drops.
- If you ticked **Email the refund receipt**, your client gets the receipt by email.
- The refund appears in your [Financials report](https://docs.moodiri.com/financials/financials-report#overpayments-client-credit) as refunded to client.
- If you recorded it by mistake, void it. See [Void a client refund](https://docs.moodiri.com/invoices/void-a-client-refund).

## Limits

- Moodiri records the refund; it never moves money. Card refunds made in Stripe are picked up automatically and must not be recorded here.
- Sending a receipt needs a client email address.
- Up to 10 proofs per refund, each up to 100 MB.
- Credit imported from QuickBooks can't be refunded in Moodiri.

## Troubleshooting

- **Refund recorded. The receipt email didn't send — resend it from the refund.** Choose **Send receipt** on the refund.
- **The available client credit changed. Close this dialog and refresh the balance.** Someone used the credit meanwhile. Refresh and check the new balance.
- **This client credit cannot be refunded in Moodiri.** The credit came from somewhere Moodiri can't refund, such as a QuickBooks import.

## Questions

### Does Moodiri send the money to my client?

No. You pay the refund yourself, by check, Zelle or another method, and Moodiri records it. Moodiri never moves the money.

### I refunded a card payment in Stripe. Should I record it here?

No. Card refunds made in Stripe are picked up automatically. Recording them here would count them twice.

### Where does the client see the refund?

In their portal, with its receipt. See [Refunds and refund receipts](https://docs.moodiri.com/for-clients/invoices-and-paying#refunds-and-refund-receipts).