Processing Refunds After Payment in Tabs

Last updated: April 27, 2026

Use this guide when you need to return money after a payment has already been recorded on an invoice in Tabs.

Quick Decision Guide

Not sure which payment method was used? See: https://help.tabs.com/articles/8515302020-what-payment-methods-are-shown-on-an-invoice?lang=en

Payment Method

Recommended Approach

Stripe (card / bank debit via Stripe)

Refund in Stripe first → update Tabs → optionally create a credit memo for accounting

Non-Stripe (check, wire, manual, ACH outside Stripe)

Prefer crediting a future invoice → otherwise refund externally and reconcile in Tabs with a credit memo

Path A — Stripe Payments

Stripe is the source of truth for money movement. Tabs reflects balances, but refunds must start in Stripe.

Step 1: Issue Refund in Stripe

  1. Open the Stripe Dashboard (ensure you're in the correct connected account).

  2. Locate the Charge or PaymentIntent:

    • Match by amount, customer, or date

    • Use Stripe customer ID if available

  3. Click Refund (full or partial)

  4. Confirm the refund has succeeded

Why this matters: The customer does not actually receive funds until Stripe processes the refund.

Step 2: Update Payment in Tabs

After the refund is completed in Stripe:

  1. Open the relevant invoice in Tabs

  2. Locate the associated payment

  3. Take the appropriate action based on your workflow:

    • Remove the payment

Goal: Ensure the invoice balance and payment status accurately reflect the refund.

Step 3: Create a Credit Memo

Use a credit memo when you need to reflect the refund in accounting or reporting.

Create a credit memo if:

  • Finance requires it for ERP sync

  • You need a clear audit trail

  • The refund relates to specific invoice line items or adjustments

Path B — Non-Stripe Payments

Option 1: Apply Credit to Future Invoice (Recommended)

  1. Confirm the credit amount with the customer

  2. Apply a discount (negative product) or customer level credit memo to a future invoice

Option 2: Refund Outside Tabs

If a future credit is not feasible:

  1. Return funds via your normal process:

    • Bank transfer

    • Check

    • External payment system

  2. Coordinate with finance to ensure Tabs reflects reality:

    • Adjust or remove payments

    • Issue a credit memo if needed

    • Add internal notes for clarity

Summary Checklist

Stripe Payments

  •  Refund issued in Stripe

  •  Payment updated in Tabs

  •  Credit memo created (if required)

  • Stripe handles money movement. Tabs reflects financial state.

Non-Stripe Payments

  •  Future credit applied (preferred)

  •  OR refund issued externally

  •  Tabs records reconciled with financeKey Principle