I have had to make a Part Refund on an order. The customer purchase four items. When he recieved them he decide he only wanted three and sent one back for a refund. The refund was for £8.25 via his method of payment Pay Pal.
I refunded the £8.25 from my Pay pal account.
The breakdown was as followsstrong text
From my Pay pal account £7.97
Pay Pal Fee £0.28 ( The fee is paid back by Pay Pal.)
How do I show this on my accounts when I do a credit note to adjust the reciept. As it will not marry up.
Thank you for taking time to read this and for your help
Process refund (actual bank transfer) using credit note screen , use paypal a/c from drop down list. Now go to paypal a/c and book an entry for reversal of paypal charges and tag it to bank charges or paypal charges if you have separate a/c for it. This will relefect correct paypal charges in your P&L and balance in paypal a/c too
As @FaradayKeynes mentions, you’ll need to create a credit note here from the invoice.
Let’s say for example, that the invoice is for £25.00. When viewing the invoice, click More Options and select Credit Note. This will take you to the credit note screen, where you can adjust it to £8.25 refund. Save it, and log the payment from the PayPal bank account (this then shows the money going out to the customer).
With the fee, you will see an entry in your PayPal bank account for the fee reversal, which is treated in the same way, but from the invoice from PayPal for the fee charged. You may be able to tag this as a refund from a supplier from the bank (I’ll have to double check that, otherwise you’ll need to repeat the process above but from the supplier invoice).
Then, if PayPal takes the balance (total minus fee) from your bank account, tag it as a transfer back to your PayPal account, and everything should balance up for you.
Hope that helps