How to Refund a Paid Invoice in Xero

Quick summary

To refund a paid invoice in Xero, you navigate to the reconciled credit note linked to that invoice and use the Make a Cash Refund section to submit the refund details. The entire process takes under a minute and instantly updates the invoice status in Xero.

Steps

1. On Xero's main dashboard, head to the top menu bar and click Business.
2. Choose Invoices from the dropdown list of options.
3. Find and open the credit note that has been reconciled with the invoice payment you wish to refund.
4. Scroll down to the Make a Cash Refund section and fill in the required fields, including Amount, Date, Bank Account, and Reference.
5. Click Add Refund to submit and process the refund.
6. The paid Xero invoice will be refunded instantly once the steps are complete.