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 Partial Refund of a Card Payment with Business or Payer Paid Fees that has been NOT yet 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
- Create an Accounts Receivable Credit Note
- Make the Credit Note to the Contact who’s Invoice is being refunded
- Reference the original Invoice number that is being refunded
- Add line items to match the original Invoice being refunded (ensuring all details of the line item(s) and Total match exactly)
- Make a Cash Refund to the Credit Note for the full balance
- Set the Date of the Cash Refund as today
- Make the Cash Refund from CCCLEAR - Pinch Payments Clearance Account
- Reference the Refund ID supplied by Pinch for the refund (it will look like this: ref_ABC12D3FG4)
STEP 2 - Adding a Spend Money Transaction for the Refund
- Create a Spend Money transaction in the Account that Pinch settles funds to
- Make the Spend Money transaction to PinchPayments - email@example.com
- Reference Refund ID supplied by Pinch for the refund (it will look like this: ref_ABC12D3FG4)
- 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))
- Set the Unit Price as the partial value of the Invoice being refunded
- Set the line item's GL Account as CCCLEAR - Pinch Payments Clearance Account
- Set the Tax Rate as BAS Excluded
- Ensure amounts are Tax Inclusive
- The settlement entry in Xero for this payment will be for the original (full amount) of the Invoice. When you upload your Bank Statement that shows the settlement of the remainder of the transaction that is being partially refunded, you will be able to match it to the original settlement line already in Xero for this payment + this Spend Money Transaction to balance out the difference!