Deposits are often collected to secure commitments, but sometimes you need to return them when a member leaves. In OfficeRnD, refunds are recorded with a credit note.
This article explains the available refund methods, the steps to complete a refund, and best practices for keeping deposit balances accurate.
Summary
Refund a deposit using a credit note in OfficeRnD.
Choose between three different refund methods.
Ensure the "Deposit Held" balance is updated correctly.
Avoid common issues such as discrepancies or outdated entries.
Apply best practices for reliable deposit management.
An alternative to refunding a customer's deposit is issuing a credit note for the invoice that originally included the deposit. More on that here.
Before you start
Before recording a refund in OfficeRnD, you must issue the refund through your payment gateway or an alternate method (such as cash or cheque). OfficeRnD only records the transaction.
What is a deposit refund?
A deposit refund is the process of returning a member's deposit by creating a credit note in OfficeRnD. The credit note reduces the "Deposit Held" balance in the member or company profile.
When and why to refund a deposit
You refund deposits when members leave or when a deposit is no longer required. Refunds are important for maintaining accurate balances and ensuring reports reflect the true status of deposits.
Methods to refund a deposit
There are three ways to record a refund in OfficeRnD. Each method updates the "Deposit Held" balance differently.
Method 1: Add a Credit Note from the original fee
Go to
Operations > Fees and find the original deposit fee.
Click the cogwheel icon
next to it and select 
Add Credit Note.
Enter the Credit Note details and click Add.
Method 2: Manually create a Credit Note
Go to Billing > Invoices and click Add Credit Note.
Select the company or member to whom you will issue the Credit Note.
Click Add new line item.
Enter a name and select the "Deposits" Revenue Account. Always use this account to ensure the "Deposit Held" balance is updated.
Click Add.
Method 3: Use Credit Deposit Held
When adding a credit note, select Credit Deposit Held to apply the credit automatically. This option includes validation to prevent over-crediting.
Refund a deposit
The example below shows how to refund a deposit using Method 3.
Open the profile of the member or company.
Go to the Invoices section and click Add Credit Note.
Select Credit Deposit Held.
Click the edit icon
to open the line item editor.Enter the amount of the deposit to be refunded in the Unit Price field.
Click Add.
Open the newly created credit note and click Add Refund.
Select the method used to issue the refund (bank transfer, POS, cash, cheque) and enter the amount.
Click Add. The deposit held in the company profile will be lowered by the amount you refunded.
Tips for success
Keep the following points in mind to avoid errors:
Link credit notes to the original deposit invoice to ensure the system reduces the "Deposit Held" balance correctly.
Updates to the "Deposit Held" balance may take time to synchronize. Always check reports after synchronization is complete.
Review the AR Aging report to confirm accuracy after refunds.
Mark deposit fees as refundable when creating them.
Use only the Deposits revenue account when creating manual credit notes.
An alternative to refunding a customer's deposit is issuing a credit note for the invoice that originally included the deposit. More on that here.
Checklist for deposit management
Use this checklist to keep deposit records accurate:
Always mark deposit fees as refundable during creation.
Use linked credit notes for refunds to ensure proper allocation.
Verify that manual credit notes use the "Deposits" revenue account.
Allow sufficient time for synchronization before finalizing reports.
Review reports to identify discrepancies, outdated entries, or incorrect statuses.