Void vs Refund (and what "Reverse Transaction" actually does)

Modified on Thu, Apr 30 at 11:38 AM

When you need to undo a payment in DealerWorks, the action is always the same: Reverse Transaction. Whether that becomes a void or a refund depends entirely on when the original payment was processed — same day or a prior day. DealerWorks determines this automatically. You do not choose.

This article explains the difference, covers both procedures, and clarifies who can do each.

Permission required — and it depends on which outcome applies

Voids (same-day reversals) are a permission most cashiers and service advisors are granted by their dealership.

Refunds (prior-day reversals) are almost always restricted to senior office or accounting staff. Most front-desk employees will not see this option at all.

If Reverse Transaction is not visible on a transaction, you do not have the required permission. Contact your manager or DealerWorks admin — do not ask a coworker to log in on your behalf.

The Difference at a Glance

Outcome	When it applies	What happens to the customer	What you see in reporting
Void	Transaction was processed today — same calendar day	The charge is cancelled before it settles. The amount never leaves their account. Nothing appears on their card statement.	Transaction shows as Voided (grey). No separate refund line.
Refund	Transaction was processed on any prior day	The funds have already settled. A new outbound transaction returns the money. Typically takes 5-10 business days to appear on their card.	Original sale and a separate refund line both appear. Net result is $0. Both lines are permanent for audit history.
Reverse Transaction	The action you take — always	DealerWorks checks the transaction date and automatically applies a void or refund. You do not select which one.

The cutoff is the calendar day, not the hour

If the original transaction was processed today, the reversal will be a void — regardless of how many hours ago it was taken. If it was processed on any previous day, it will be a refund. When in doubt, assume a refund and ensure the appropriate person is handling it.

When to Use Reverse Transaction — and When Not To

Use Reverse Transaction for:

A payment posted to the wrong RO or invoice
The wrong amount was charged
A customer was charged twice and you have confirmed a true duplicate
A customer is entitled to a refund for a returned part or uncompleted service

Do not use Reverse Transaction for:

Payments processed outside DealerWorks
Undoing a refund that was issued in error — refunds cannot be reversed, payment must be collected again
Transactions that the customer has already disputed with their bank — contact DealerWorks support first

Partial Reversals

You do not have to reverse the full transaction amount. When the Reverse Transaction modal opens, the Amount field is pre-filled with the full transaction total. You can edit this to a smaller amount if only a partial correction is needed — for example, if a customer overpaid by $46 on a $1,046 transaction, enter 46 in the Amount field, not 1046.

Multiple partial reversals can be applied to the same original transaction. Each one creates a separate void or refund line in reporting.

How to Void a Same-Day Transaction

For transactions processed today. Most cashiers and service advisors have this permission.

Before you begin: Confirm the correct transaction — customer name, invoice number, amount, and that it was processed today. Do not proceed if you are unsure.

1
Click Reporting in the main navigation, then click Transactions.
2
Locate the transaction. Click the ⋮ (three dots) action menu on the right side of the transaction row.
3
Click Reverse Transaction.
4
Review the pre-filled Amount. Edit it if you are doing a partial void.
5
Enter a reason in the Reason (Credit Memo) field. This is required. Be descriptive — for example: "Wrong amount entered — customer overpaid" or "Posted to wrong RO, reprocessing."
The reason is stored for accounting records and audit purposes. It is not visible to the customer.
6
Click Refund Transaction, then click Refund Transaction again to confirm.
The button label says "Refund Transaction" regardless of whether the outcome is a void or a refund — this is expected.
7
The transaction status updates to Voided (green). The customer will not see a charge on their statement.

How to Refund a Prior-Day Transaction

For transactions processed on any previous day. This permission is typically restricted to senior office or accounting staff.

Before you begin: Confirm with a manager before processing a prior-day refund. Refunds cannot be undone. If the customer has already filed a dispute with their bank, stop and contact DealerWorks support before proceeding.

1
Click Reporting in the main navigation, then click Transactions.
2
Locate the transaction. Confirm it shows the correct customer, invoice number, amount, and a prior date. Click the ⋮ action menu.
3
Click Reverse Transaction.
4
Review the pre-filled Amount. Edit it if you are issuing a partial refund — for example, if only part of the service was incorrect.
5
Enter a reason in the Reason (Credit Memo) field. This is required and cannot be left blank. Be specific — for example: "Service not completed — customer refund approved by [manager name]" or "Customer overpaid by $46."
This reason is stored in accounting records and will appear in the DTR and Cashier Report alongside the refund line.
6
Click Refund Transaction, then click Refund Transaction again to confirm.
7
The refund processes. The original transaction remains as Approved (green) and a new refund line appears below it. The customer typically sees the return within 3–5 business days.
If the status shows Pending (Not Approved) immediately after submission, this is normal — the refund is in process. Check back after a few minutes.

What You'll See in Reporting

A common source of confusion: after a refund, the original sale still shows in the DTR and transaction list. This is expected. DealerWorks keeps both lines for a complete audit trail.

Outcome	What the DTR shows	What the Transactions list shows
Void	Transaction may be excluded from settled totals or shown as voided — it did not settle	One transaction row, status: Voided (grey)
Refund	Original sale line + separate refund line. Net is $0. Both appear for audit history.	Two rows under the same transaction ID: original (Approved, green) + refund (Refunded, green)

Common Questions

The "Reverse Transaction" option isn't showing on a transaction

You either don't have the required permission, or the transaction is in a state that cannot be reversed (already voided, already refunded, or a cash/check transaction). Contact your manager or DealerWorks admin.

The button says "Refund Transaction" — does that mean it won't void it?

The button label is always "Refund Transaction" regardless of the outcome. DealerWorks decides void vs. refund automatically based on the transaction date. If it was processed today, it will void. If prior day, it will refund.

I reversed a transaction but the original sale still shows in the report

If the payment had already settled, DealerWorks issued a refund — not a void. Both lines are shown intentionally for audit history. The net result of the two lines is $0. This is expected and correct.

Can I undo a refund?

No. Once a refund is processed, it cannot be reversed. If a refund was issued in error, you must collect payment again through the normal payment flow. Notify accounting immediately.

What do I write in the Reason (Credit Memo) field?

Write a brief, honest explanation of why the reversal is being made. It does not need to be a formal credit memo number from your DMS — it is a plain-text note stored in DealerWorks for accounting and audit purposes. Examples: "Customer overpaid — partial void" / "Wrong RO — reprocessing to correct invoice" / "Service not rendered — refund approved by manager."

What about cash and check — can I reverse those the same way?

No. Reverse Transaction applies to card transactions only. Cash and check corrections do not follow the same process and should be handled through your accounting team.