If an invoice was accidentally paid using account credit (funded by a check), the fix depends on whether you refund or void the payment.
Understanding the difference is key.
Refund vs. Void — What’s the Difference?
🔄 Refund Payment
(Primarily applies to online payments like credit cards)
Returns the money to the customer
Does not restore the balance owed on the invoice
Invoice will show:
$0 balance
Marked as Paid
So while the money goes back, the invoice will still look settled.
🚫 Void Payment
Returns the money
Restores the balance owed on the invoice
Invoice will show:
Original amount owed
$0 paid
This effectively resets the invoice so it can be paid again properly.
What’s the Best Approach?
Editing an existing invoice after a payment mistake can get confusing quickly.
If you need to re-pay the invoice using a different method, the cleanest solution is often:
➡ Create a new invoice
➡ Have them pay that invoice correctly
➡ Leave a clear internal note for documentation
This keeps reporting and reconciliation cleaner.
Quick Summary
Refund → Money returned, invoice still shows paid
Void → Money returned, invoice balance restored
Best practice if repaying differently → Create a new invoice
When in doubt, choose the path that keeps accounting simple and audit trails clean.