How to Reconcile a Full Refund of an Unsettled 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 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 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 Invoice for the Surcharged Transaction Fees

1. Create a new Invoice
2. Make the Invoice to the customer who's Invoice is being refunded
3. Reference the original Invoice number that is being refunded
4. Add 1 line item with the Description: Pinch Payments Payer Surcharge for Payment Payment Gateway fees for Payment [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) 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 Invoice 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 refunded preceding it with 'CC - '
14. Click Add Payment

STEP 3 - 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 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 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 refunded preceding it with 'CC - '
14. Click Add Payment

STEP 4 - 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 5 - 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)