Refunds in Inn-Flow are handled differently depending on the type: vendor refunds, customer/guest refunds, or ePay payment refunds. The key principle is the same across all types – record the refund as a separate transaction so your bank reconciliation stays accurate and your audit trail is clean.
Vendor Refunds (Partial or Full)
When a vendor refunds money after a payment has already cleared your bank, do not void the original payment. The money left your account, so the original transaction is valid. Record the refund as a new incoming transaction instead.
Step 1: Reconcile the Original Payment
Navigate to Accounting > Register > Reconciliation.
Match the full withdrawal amount from your bank statement to the original payment in Inn-Flow.
Complete the reconciliation as normal – the original payment should clear at the full amount.
IF PRO TIP: Even if you know a partial refund is coming, always reconcile the original payment at its full amount first. This keeps your bank reconciliation aligned with actual bank activity.
Step 2: Record the Vendor Refund
Go to Accounting > Register.
Click Add Transaction.
Select Deposit as the transaction type.
Enter the refund amount and date received.
In the Description or Memo field, note the original payment reference and vendor name (e.g., "Refund from ABC Supplies - original payment #1234").
Assign the transaction to the same GL account used in the original payment.
Click Save.
Do not void the original payment. Voiding implies the money was never sent, which misrepresents actual bank activity and will cause reconciliation issues.
Customer / Guest Refunds
If you need to refund a guest (e.g., an overcharge or billing dispute), the refund should originate from your PMS and flow into Inn-Flow through the daily activity import. Handle it as follows:
Process the guest refund in your PMS following your property's standard refund procedure.
The refund will appear as a negative amount in your next Daily Activity Entry import.
Verify the refund posts to the correct revenue or liability account in Daily Activity.
ePay Payment Refunds
If a payment was sent through Inn-Flow's ePay module and needs to be refunded or reversed, the process depends on whether the payment has already been processed by the bank.
Payment not yet processed: Contact Inn-Flow Support to request a void or cancellation before the payment settles. This may prevent the funds from leaving your account.
Payment already processed: The vendor must issue the refund directly. Once received, record it as a deposit transaction in Banking > Register > Add Transaction, following the vendor refund steps above.
Quick Reference: Refund Types
Refund Type | Where to Record | Key Action |
Vendor refund | Banking > Register > Add Transaction | Record as a deposit; do not void original payment |
Customer/guest refund | PMS (flows into Daily Activity) | Process in PMS; verify in Daily Activity review |
ePay refund (not processed) | Contact Inn-Flow Support | Request void before settlement |
ePay refund (already processed) | Banking > Register > Add Transaction | Vendor issues refund; record as deposit |