If an Advance Pay is made in error, or the customer changes their mind and would like to have it refunded, follow this procedure to refund the payment and balance out your end of day reports:

In our example an Advance Payment of $100 was made with a credit card. To refund it, create a sale and use a non-tracking stock item called "Credit Refund" with a price of $100. Then use the credit for $100 as payment. That removes the credit. Then create a return for that item, and put the return amount on customer's credit card. This will balance out the end of day report.