How to Reconcile a Full Refund of a Settled Payment with Payer Paid Fees

IMPORTANT: Depending on the amount to be refunded, the payment method used, and the settlement status of the payment, you will need to perform different actions. 

This article covers reconciling the Full Refund of a Bank or Card Payment with Payer Paid Fees that has already been Settled to you.  Other articles relating to reconciling refunds can be found here.

STEP 1 - Adding an Accounts Receivable Credit Note for the Invoice

1. Create an Accounts Receivable Credit Note
2. Make the Credit Note to the Contact who’s Invoice is being refunded
3. Reference the original Invoice number that is being refunded
4. Add line items to match the original Invoice being refunded (ensuring all details of the line item(s) and Total match exactly)
5. Make a Cash Refund to the Credit Note for the full balance
6. Set the Date of the Cash Refund as today
7. Make the Cash Refund from CCCLEAR - Pinch Payments Clearance Account
8. Reference the Refund ID supplied by Pinch for the refund (it will look like this: ref_ABC12D3FG4)

STEP 2 - Adding an Accounts Receivable Credit Note for the Surcharged Transaction Fees

1. Create an Accounts Receivable Credit Note
2. Make the Credit Note to the Contact who’s Invoice is being refunded
3. Reference the original Invoice number that is being refunded
4. Add 1 line item for Fee Refund for Invoice [INVOICE NUMBER] (replacing [INVOICE NUMBER] with the original Invoice number that is being refunded)
5. Set the Unit Price as the fee portion of the Pinch Payment that is being refunded (you can find this by viewing the Payment in Pinch and looking at the Total Pinch Fee line in the subtotals summary)
6. Set the line item's GL Account as CCEXPENSE - Pinch Payments Fees
7. Set the Tax Rate as GST on Expenses
8. Ensure amounts are Tax Inclusive
9. Make a Cash Refund to the Credit Note for the full balance
10. Set the Date of the cash refund as today
11. Make the Credit Note from CCCLEAR - Pinch Payments Clearance Account
12. Reference the Refund ID supplied by Pinch for the refund (it will look like this: ref_ABC12D3FG4)

STEP 3 - Adding an Accounts Payable Credit Note for the Transaction Fees

1. Create an Accounts Payable Credit Note
2. Make the Credit Note from PinchPayments - hello@getpinch.com.au
3. Reference the original Invoice number that is being refunded
4. Add 1 line item for Fee Refund for Invoice [INVOICE NUMBER] (replacing [INVOICE NUMBER] with the original Invoice number that is being refunded)
5. Set the Unit Price as the fee portion of the Pinch Payment that is being refunded (you can find this by viewing the Payment in Pinch and looking at the Total Pinch Fee line in the subtotals summary)
6. Set the line item's GL Account as CCEXPENSE - Pinch Payments Fees
7. Set the Tax Rate as GST on Expenses
8. Ensure amounts are Tax Inclusive
9. Make a Cash Refund to the Credit Note for the full balance
10. Set the Date of the Cash Refund as today
11. Make the Cash Refund from CCCLEAR - Pinch Payments Clearance Account
12. Reference the Refund ID supplied by Pinch for the refund (it will look like this: ref_ABC12D3FG4)

STEP 4 - Adding a Spend Money Transaction for the Refund Recovery Debit from Pinch

1. Create a Spend Money transaction in the Account that Pinch settles funds to
2. Make the Spend Money transaction to PinchPayments - hello@getpinch.com.au
3. Reference Refund ID supplied by Pinch for the refund (it will look like this: ref_ABC12D3FG4)
4. Add 1 line item for Refund ID [Pinch Refund ID] (replacing [Pinch Refund ID] with the Refund ID supplied by Pinch for the refund (it will look like this: ref_ABC12D3FG4))
5. Set the Unit Price as the Net value settled by Pinch for the Invoice that is being refunded (you can find this by viewing the Payment in Pinch and looking at the Total Received line in the subtotals summary)
6. Set the line item's GL Account as CCCLEAR - Pinch Payments Clearance Account
7. Set the Tax Rate as BAS Excluded
8. Ensure amounts are Tax Inclusive
9. When you upload your Bank Statement that shows the Refund Recovery Debit from Pinch, it will auto match and allow you to reconcile the transaction in one click!