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

1. Open Write Checks from theBanking menu.
2. Select the bank accountaccount number from where you are issuing the check.
3. Type in the customer name in thePay field.
4. Enter the amount 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 the Customer menu.
8. Select the customer from the customer field and select 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.