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 Bank or Card Payment with Business or 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
- Create an Accounts Receivable Credit Note
- Make the Credit Note to the Contact who’s Invoice is being partially refunded
- Reference the original Invoice number that is being partially refunded
- Add line items to match the original Invoice being partially refunded (ensuring all details of the line item(s) and Total match exactly)
- Next, reduce either the Unit Price of all Line Items equally or remove individual Line Items as necessary to bring the total down to the partial value being refunded.
- 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 partial refund (it will look like this: ref_ABC12D3FG4)
STEP 2 - Adding a Spend Money Transaction for the Refund Recovery Debit from Pinch
- 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 partial 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 partial 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
- 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!