Cancelling Membership with New Refund Button

[vrandall]

We have customers who paid for a membership and eventually need to cancel. To process a refund we click the edit pencil in the membership> select cancel>click save. This prompts the question " Do you want to refund customer X amount?". When selecting YES, the system creates TWO invoices. One invoice making a negative amount out of deferred liability and into income deferred. The second invoice generated is taking the amount out of income and creating a negative invoice. Customers account then shows a credit balance. 

QUESTION: Why is this process not creating a refund to the credit card that was used on file to make the payment and making a negative payment? Do we need to manually making the refund to the credit card after the cancellation invoices are created??

[m_samuel · Accepted solution]

In the Revenue Recognition portion of the membership set up, you can select an option to 'do not create a charge/refund' We didn't like that it created 2 new invoices, either. By selecting this option, the cancellation of the membership still populates a cancellation invoice that zeros out due to moving money out of deferred revenue and into an income account; cleaning up the DR balance for the membership. We then refund the customer via the original invoice from the membership sale. 

[CRutzke]

We do choose do not create refund/charge, when it pops up.  Sometime this week, it stopped.  Does anyone know why? I have a bunch of membership cancellations on my accounting page that are not correct. 

[AmberC]

@vrandall Hi there! Yes, this is the intended workflow depending on the deferred revenue settings when the membership type was created. You will need to turn the credit on the customer profile into a refund (or leave it there for future use). This Knowledge Base article might help: https://help.servicetitan.com/how-to/cancel-delete-cust-membership