Paypal Transactions after a refund

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1

We had a refund go into our paypal account.
Subsequent paypal transactions have started using that credit.
Can anyone tell me who to tie this up please?
Thanks

2

Hi @bigfootnetworks

I’m not sure I follow here I’m sorry.

Is it that you have PayPal as a supplier, and the credit is held on their account rather than being shown as a transfer to/from your current account?

3

Hi There…
Sorry, not sure if I’ve explained myself fully.

We purchased an item from a supplier and paid for it via Paypal.
We then didn’t receive the item so they re-credited our Paypal account.
So the £338 went into the Paypal account in paypal.
We then purchased another item from a different supplier.
Paypal used the credit we had in the Paypal account to pay for those item’s rather than pulling the money from our business bank account.

I’m waiting to know, how to tie up the refund and the other purchases?

Thanks

4

Think we’re on the same wavelength now :slight_smile:

To set the scenario, let’s say I purchase a £100 item from Acme Supplies, but this never arrived. They’ve still invoiced me however. As a result, they’ve refunded the £100 back to my PayPal account, which PayPal has held. Then, I’ve purchased another item from Super Supplies for £75, also paid from PayPal and they’ve invoiced me too.

I envision my account would looking something along these lines:

  1. I have the invoice for £100 from Acme Supplies, tagged as paid from my PayPal (‘PP’) account.
  2. The £100 will leave my current account, tagged as a transfer to the PP account, so the PP account is now at £0.00.
  3. The item hasn’t arrived, so they’ve refunded the full £100. I raise a credit note for this and select the option to refund the money back to my PP account. My PayPal balance is now +£100.00
  4. I’ve purchased the new item from Super Supplies for £75, and created their invoice. I’ve tagged this as paid from my PP account, so the balance is now +£25.00.

At this stage, you could either leave the £25 on account with PayPal, which would be used for future purchases, or you could request the funds back as a transfer. If you opt to leave them there, you would just continue to tag future invoices as paid from that account and the balance would decrease.

If however you opt to transfer the money back to your current account, you would tag it back as a transfer when the funds hit your current account.

I hope that helps!

5

Hi…
Yes…
So I tag that it was paid via the paypal account rather than the main bank account.
Thanks very much.
Gordon

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