Handling InfoTrack refunds when billing clients

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:

1. Mark the refunded amount as a write-off. 
2. Select Add Entry under the Disbursements table to add a new line item for the $15.00 (GST incl.) InfoTrack refund fee.
   

For billed InfoTrack searches

If the invoice has already been sent out and paid by the client, issue a credit note to avoid overcharging the client:

1. Select Add New on the top-left corner of the Smokeball Web App.
2. Select Credit.
   
3. Enter the refund amount minus the $15.00 InfoTrack refund fee (e.g. $83.33 - $15.00 = $70.33 entered as the credit note amount).
4. Select Save.

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:

1. Transfer the refund amount from the Operating Account to your Trust Account.
2. Record a payment from the Trust Account to your client.
3. Open Xero/MYOB and create a journal entry or credit entry to match the debit out of the Operating Account.
4. Issue the refund to your client from the Trust Account.