What I have done is create an AP vendor called REFUND - when I have to refund a customer, I adjust the credit amount from AR through a cash batch to a holding GL account and then enter an AP under the AP vendor REFUND using the holding GL account. Our REFUND vendor has a memo to always pop up to alert data entry to update the REMIT to address for the check. We rarely process refunds so we can only have one invoice entered at a time and that works for us. 

So back to the subject of refunding a customer maybe I should give a little more details on my refund... customer paid an invoice via credit card - it was then discovered we misbilled two sku's  - I figured a workable solution would  be to issue a credit memo on the whole invoice and "receiving" all the merchandise back - and re-invoicing the same order under a different sales order and invoice-What I expected and hoped for was that the credit card would be credited the full amount - It happened in the past with another customer after issuing a credit memo on an invoice, that was paid via credit card. Well that did not happen. The credit was applied to the new invoice leaving 621.00 that needs to be refunded back to the customers credit card (ideally). If there is not a work around for that how do issue a check to this customer? I find this software so unforgiving when mistakes are made. Anyone have any suggestions?

Thanks.