If the customer makes a prepayment and cancels the order before receiving the goods, Use this procedure to cancel prepayment.

1. Open Write Checks from theBanking menu.
2. Select Bank ,account number from the Bank Name, Account Name Menus.
3. Type the Customer name in the Pay field.
4. Enter the amount that you are refunding to the customer.
5. Select Accounts Receivable account from GL account field.
6. Click Save or Save & Print to save the check.
7. Then choose Receive Payments from Customer menu.
8. Select the customer from customer field and the payment mode.
9. Leave the Deposit this amount into field empty.
10. Verify the check that you have just entered using Write checks.
11. Click Submit to record the refund.