There are multiple ways to handle a credit to a client, depending on the situation. However, for this scenario, adding a credit entry is the easiest way to refund the client. This is because credits are handled differently in Version 19. A credit can be issued to a client at any time, even if the fee or cost has already been paid by the client. Once the credit has been final billed and updated, it is applied toward the original cost. Any payment(s) that went toward the cost will be unallocated and reallocated during the update statements process.
To add a credit for a cost
For more information on best practices for crediting clients, including notes regarding how credits affect integration with General Ledger Software (GLS) and Accounts Payable Software (APS), refer to Knowledge Base Article R11760, “Best Practices When Applying Credits.”