diff --git a/booking.manual_payment.inc b/booking.manual_payment.inc
index 6460187..4cdd1b1 100644
--- a/booking.manual_payment.inc
+++ b/booking.manual_payment.inc
@@ -18,6 +18,7 @@ function booking_manual_payment_admin($nid)
 	
 	$payment_balance_options[0] = t('Total Payment (sets total amount paid to this value)');	
 	$payment_balance_options[1] = t('Balance Payment (adds this value to the total amount paid)');
+	$payment_balance_options[2] = t('Manual Refund (subtracts this value from the total amount paid)');
 
 	//collect the various payment options
 	$result = db_query("SELECT pid, booking_price_descrip, booking_price, booking_late_price FROM {booking_price} where booking_eventid = :eid " .
@@ -163,16 +164,26 @@ function booking_manual_payment_admin_submit($form, &$form_state) {
 			$person = node_load($key);	
 
 			if ($person) {
+				// Check whether this is a balance or total payment
+				$payment_type = $form_state['values']['payment-balance-type'];
 				
-				//check whether this is a balance or total payment
-				$is_balance = $form_state['values']['payment-balance-type'];
-				
-				//balance payment
-				if ($is_balance == 1) {
+				// Refund
+				if ($payment_type == 2) 
+				{
+					//subtract this payment to their existing balance
+					$total_paid = $person->booking_amount_paid - $price;
+					$invoice_type = "Refund";
+				} 
+				// Balance payment								
+				elseif ($payment_type == 1) 
+				{
 					//add this payment to their existing balance
-					$total_paid = $person->booking_amount_paid + $price;
-				//total payment				
-				} elseif ($is_balance == 0) {
+					$total_paid = $person->booking_amount_paid + $price;				
+					$invoice_type = "ManualPayment";
+				} 
+				// Total payment				
+				elseif ($payment_type == 0) 
+				{
 					//set this as the persons new balance
 					$total_paid = $price;
 					//change $price so that we add the correct dollar amount in the payment record
@@ -181,6 +192,7 @@ function booking_manual_payment_admin_submit($form, &$form_state) {
 					$newprice = $price - _booking_amount_paid($key, $person);
 					watchdog('booking', 'Changing price for payment record from $!price to !newprice.', array('!price' => $price, '!newprice' => $newprice));
 					$price = $newprice; 
+					$invoice_type = "ManualPayment";					
 				}
 
 				//check if they have now fully paid
@@ -226,7 +238,7 @@ function booking_manual_payment_admin_submit($form, &$form_state) {
 			 		'booking_mc_currency' => 'AUD',
 			 		'booking_mc_fee' => '0.00',
 			 		'booking_quantity' => 1,
-			 		'booking_invoice' => 'ManualPayment',
+			 		'booking_invoice' => $invoice_type,
 					'booking_payer_id' => '',
 			 		'booking_payment_date' => $payment_date,
 			 		'booking_payment_status' => '',