Learn how Smokeball handles InfoTrack refunds when disbursing InfoTrack costs to the client.
How InfoTrack refunds are displayed in the matter
If you have received a refund from InfoTrack, such as a refund on failed searches, the refunded amounts will be displayed in the InfoTrack tab of the matter.
Note: Whenever a refund is issued by InfoTrack, a $15 fee will be deducted from the refund amount.
How to pass on refunds from InfoTrack to your client
If you plan to issue future invoices on the matter
If the matter is still active and you intend to continue issuing invoices to your client, the InfoTrack refund amount can be entered in your next invoice.
For unbilled InfoTrack searches
In the draft invoice:
- The original disbursement will be marked as a write-off.
- A new disbursement entry will be created to show the (Initial amount - Refunded
amount) + the Refund fee.
For billed InfoTrack searches
If the invoice has already been sent out and paid by the client, a credit note will be created for the refund.
If the matter has been closed
In this instance, to ensure BAS-compliant bookkeeping, create a credit/journal entry in Xero or MYOB to account for the InfoTrack refund and GST amounts of the overpayment.
To refund your client:
- Transfer the refund amount from the Operating Account to your Trust Account by creating a trust deposit.
- Record a payment from the Trust Account to your client.
- Open Xero/MYOB and create a journal entry or credit entry to match the debit out of the Operating Account.
- Issue the refund to your client from the Trust Account.