How to Reconcile a Partial Refund of an Unsettled Payment with Business Paid Fees paid from a Bank Account

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 Payment with Business 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

1. Create an Accounts Receivable Credit Note
2. Make the Credit Note to the Contact who’s Invoice is being partially refunded
3. Reference the original Invoice number that is being partially refunded
4. Add line items to match the original Invoice being partially 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 partial refund (it will look like this: ref_ABC12D3FG4)

STEP 2 - Adding a Bill for the Transaction Fees

1. Create a new Bill
2. Make the Bill from PinchPayments - hello@getpinch.com.au
3. Reference the original Invoice number that is being partially refunded preceding it with 'CC - '
4. Add 1 line item with the Description: Payment Gateway fees for Payment [PAYMENT REFERENCE] (replacing [PAYMENT REFERENCE] with the original Invoice's payment reference from Pinch (you can find this by viewing the Payment in Pinch and looking at the Payment Reference line beneath the subtotals summary))
5. Set the Unit Price as the fee portion of the Pinch Payment that is being partially refunded (you can find this by viewing the Payment in Pinch and looking at the Total Pinch Fee line in the subtotals summary) minus GST (divide the total by 1.1).
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 is set as Tax Exclusive
9. Click Approve
10. Make a payment to the Bill for the full balance
11. Set the Date of the Payment as today
12. Make the Payment from CCCLEAR - Pinch Payments Clearance Account
13. Reference the original Invoice number that is partially refunded preceding it with 'CC - '
14. Click Add Payment

STEP 3 - Adding a Receive Money Transaction for the Settlement

1. Create a Receive Money transaction in the Account that Pinch settles funds to
2. Make the Spend Money transaction form PinchPayments - hello@getpinch.com.au
3. Reference Refund ID supplied by Pinch for the partial refund (it will look like this: ref_ABC12D3FG4)
4. Add 1 line item for Settlement of 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))
5. Set the Unit Price as the Net value settled by Pinch for the Invoice that is being partially 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 Exclusive
9. 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 this Receive Money Transaction + the Spend Money Transaction you will making in the next step!

STEP 4 - Adding a Spend Money Transaction for the Refund

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 partial 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 partial refund (it will look like this: ref_ABC12D3FG4))
5. Set the Unit Price as the partial value of the Invoice being refunded
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 settlement of the remainder of the transaction that is being partially refunded, you will be able to match it to this Spend Money Transaction + the Receive Money Transaction you made in the previous step!