> This is the Markdown of a Backed Help Centre page, https://admin.backed.giving/help/administrator/payments/refunds-and-corrections.md. Every page is listed at https://admin.backed.giving/help/llms.txt.

> This page uses Backed's default terms, such as Funding Round and Application Template. An organisation may rename them, so read each as your organisation's own term if you've renamed it.

Once a payment is made, the money does not always stay where it went. A grantee returns part of a
grant, the bank sends a payment back, or a tranche has to wait. Backed corrects each of these on the
record it applies to, and keeps the original payment and its history:

- **Refunds**, money returned against a paid payment, on the payment's row.
- **Repayments**, money you ask a grantee to return, on the contract or the application.
- **Holds**, which keep a milestone's tranche from being paid until you release it.
- **Void and reissue**, for a paid payment the bank returned.

## Before you start

This appears only when Payments is turned on for your organisation, and you need the `Can access
Payments` permission. Your admin group's data access must give you `Full Access` to payments in the
payment's round: with `Read Only` you see the refunds, repayments and holds but can't change them.
You see only the buttons your permissions allow. Labels that name `Milestone`, `Payment Batch`,
`Application` and `Contract` use your organisation's own term if you've renamed it.

## Record a refund

A refund is recorded against one payment that is `Paid`. Find the payment on its batch's page (open
the batch from `Award and pay > Payments`) or in the `Payments` section of its milestone's page.

1. On the payment's row, select `Record refund`.
2. Enter the `Amount`, the date the money came back, how it came back (the method), and a reference
   and note if they help your finance team find it later.
3. Leave `Expected` off when the money is already in your account. Turn it on when the grantee has
   promised the money but it hasn't arrived yet.
4. Select `Record refund`.

A refund recorded without `Expected` is received at once. It lowers what the payment has paid (its
net paid), and with it the milestone's `Paid to date` and `Outstanding`, the application's paid
total and, when your organisation uses Funds, the fund's `Paid Amount` and `Available Amount`. The
payment's status stays `Paid`.

An expected refund changes no total. When the money arrives, select `Mark received` on the refund's
row, and it counts from then on. Only an expected refund offers `Mark received`.

### How much can be refunded

A payment can be refunded up to what is still refundable: the amount the bank paid, GST included,
less every refund already recorded against it, received or expected. A larger amount is refused, and
Backed says how much is still refundable.

### Delete a refund

Select `Delete` on a refund recorded by mistake. It stops counting, and the totals return to what
they were. The deletion is kept in the payment's history. A refund recorded as the receipt of a
repayment can't be deleted: it belongs to the repayment's record.

## When a milestone is overpaid

A milestone paid more than its funding amount shows `Overpaid` with the amount beside its payment
status, on its page and in the tranche summary. An application whose paid total is more than its
approved amount shows `Overpaid` with the amount beside its `Approved Amount` and in its tranche
summary. The status stays `Paid`.

The label counts received refunds, so it clears once the excess has been refunded and received. An
expected refund doesn't clear it.

## Ask a grantee to repay

When a grantee owes money back, for example after an audit or because a project ended early, ask
for it from the contract's page or the application's page.

1. Select `Request repayment`. It is offered once the repayments list has loaded. If the list
   fails to load, select `Try again` to read it again.
2. Enter the `Amount` owed, the reason and the due date. The form says which currency it is asked
   in, `Requested in` and the currency's code, under the amount. A contract is asked in its own
   currency. An application is asked in the currency of its latest paid payment, so until it has
   one the currency isn't known, the form says so, and nothing can be requested. The amount can't
   be more than the contract or application has been paid, net of refunds, in that currency.
3. Select `Request repayment`.

The grantee's applicants are sent the `Repayment requested` email, and a notification in the
applicant portal, with the amount, the due date and a remittance reference to quote when they pay.
The reference is `RP-`, the contract number or application number, and a count: the first
repayment asked of contract number `1042` is `RP-1042-1`, the next `RP-1042-2`.

The `Repayments` panel on the contract's or application's page lists each request with its
reference, amount, what has been received, what is still outstanding, its due date and its status:

- `Requested`: nothing received yet.
- `Part received`: some of the money is in.
- `Received`: all of it is in.
- `Waived`: you stopped asking for the rest.

### Record money received

When money arrives against a repayment, select `Record receipt` on it and enter the amount and the
date it arrived. The receipt is recorded as a received refund against one of the grantee's paid
payments: the one you choose, or else the latest paid payment with enough left to refund. So a
receipt lowers net paid exactly as a refund does. The repayment becomes `Part received` or
`Received` as the receipts add up.

### Waive the rest

Select `Waive` and give a reason to stop asking for what is still owed. The receipts already
recorded stay. A repayment that is `Received` or `Waived` takes no more receipts and can't be waived
again.

## Hold a tranche

A hold stops a milestone's tranche from being paid, for example while you wait on a report or look
into a concern. The hold is on the milestone, so it covers every payment of it.

1. In the `Payments` section of the milestone's page, select `Hold`.
2. Give the reason. It is shown wherever the hold is listed.

While the milestone is held:

- it isn't offered under `Add Milestones` in a payment batch, and none of its payments can be added
  to a batch;
- a batch that already holds a `Pending Approval` payment of it can't be approved until the hold is
  released or the payment is removed from the batch;
- it never reaches a bank file;
- the application's and contract's tranche summaries show it as `Held`.

Select `Release` on the milestone's page, or in `Held tranches`, to lift the hold. Releasing moves
no money; the milestone can be added to a batch again.

A milestone can't be held when it is already paid in full, when one of its payments is already in
an `Approved` or `Paid` batch (the money is past the point a hold can stop), or when it is already
held.

### See every held tranche

On `Award and pay > Payments`, select `Held tranches` beside the list of batches. It lists each held
milestone with its application, recipient, amount, the reason, who held it and when. Select
`Release` on a row to lift that hold. You see the holds in the rounds whose payments you can see.

## Void and reissue a returned payment

When the bank sends a paid payment back, for example because the account was closed, void it and
issue a replacement.

1. On the payment's row, on its batch's page or its milestone's page, select `Void and reissue`.
2. Give the reason. A reason is required.
3. Select `Void and reissue`.

The payment becomes `Voided` and its amount no longer counts as paid: the milestone's `Paid to date`,
the application's paid total and the fund's `Paid Amount` all fall by it. Backed creates a
replacement payment, `Pending Approval`, with the same recipient, milestone, application, contract,
amount, GST treatment, payment category and currency, in a new `Draft` batch titled `Reissue of`
followed by the original batch's title (or by the payment's number, for a payment added outside a
batch). The two payments link to each other.

Correct whatever made the bank return the payment, such as the bank account on the contract, then
prepare, approve and pay the new batch as usual. See
[Reviewing and approving a payment batch](review-and-approval.md).

A payment can be voided only when it is `Paid`. A milestone payment can't be voided while its
milestone is held (release the hold first), or while the milestone already has another unpaid
payment.

## Payments sent to an accounting system

When your organisation connects an accounting system and a payment has already been sent to it,
Backed never changes the bill there. A received refund or a void of that payment adds an entry
`Needs accounting adjustment` to `Integration logs`. Make the matching adjustment in your
accounting system by hand. See [Integration logs](/integrations/integration-logs).

## What a refusal means

| What you see                                       | Why                                                                                  |
| -------------------------------------------------- | ------------------------------------------------------------------------------------ |
| The refund amount is more than can be refunded     | The amount is above what is still refundable on the payment. Enter a smaller amount. |
| The payment hasn't been paid                       | Only a `Paid` payment can be refunded or voided. A voided payment can't be refunded. |
| The milestone already has a payment in a batch     | One of its payments is in an `Approved` or `Paid` batch, so it can't be held.        |
| The milestone is held                              | A held milestone's payment can't be voided, and its batch can't be approved.         |
| The repayment is closed                            | It is `Received` or `Waived`, so it takes no receipt or waiver.                      |
| The refund belongs to a repayment                  | It is a repayment's receipt, so it can't be deleted.                                 |

## What is recorded

Each refund, receipt, waiver, hold, release, void and reissue is kept in the history of the payment
or milestone it applies to, with who did it, when and the reason given. The entries can't be
changed.

## See also

- [Paying a milestone from its page](single-payments.md)
- [A payment batch's page and marking it paid](marking-paid.md)
- [Payment batches](payment-batches.md)
- [Funds in payments](/administrator/funds/funds-in-payments)
- [Payment permissions and separation of duties](permissions-and-separation.md)