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Recording refunds on paypal sales

Hello totally new and just trying out software. I made a couple of refunds in paypal but cant find how to record them they are showing as purchases , I need to record them as refund of sales please
Thank you

Hi deedee,
Go to the invoice which you want to refund. Click on option and then on Credit Note.
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how do I show its a refund of sales though please. Its in my purchases should it be in my sales . Sorry to be a pest

Hi @deedee

The menu @rhc mentioned above (including the screenshot) can be found on sales invoices too. You would just pick the original invoice that it relates to and raise a credit note from there.

Thank you but what about the original paypal entry that has been bought through in the daily feed. Its sitting in purchases but there is no category for refund of sale to allocate it to

What exactly do you mean by this? When the entry came in from the feed it would have showed up as an untagged “money out” transaction in your PayPal merchant account. In order to create a purchase you would have had to tag that transaction as “payment to a supplier”. If you have done that then untag it and delete the purchase record before you go any further.

Now if the value of that “money out” transaction exactly matches the value of the sales invoice you want to refund, then it should be possible to just tag the transaction as “refund to a customer”, choose the client and select the invoice to be refunded. But if you’re only part-refunding an invoice then you’ll have to start from the original invoice, do “more options” -> “credit note” as described above, then when you save the credit note tell it to refund from the PayPal account. This will create a new pre-tagged money out transaction which duplicates the untagged one from the feed, you can then simply delete the untagged one to get things back into balance.

Just to add, regarding the paypal feed - even if it’s a part refund you can still tag it to the corresponding invoice as a customer refund, straight from the feed. Just select refund to customer, enter the client name ie John Smith, and his purchases will appear in the drop down menu. Select the relevant invoice and tag your refund to that.

Cool, I’m sure that didn’t used to be possible, but it’s not a function I ever need to use myself (I’m a retailer so I don’t do refunds in QuickFile, that happens in the EPOS and I just do one “invoice” per Z read).

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Thank you Ian for explaining , I am new to this software and 74 today so my brain is not as bright as it was lol. I thought it might be something I had done initially so that really helps

Thank you Paul, its usually a partial refund when someone makes 2 orders and I cmbine the postage and refund the difference … probably making myself extra work by being honest lol

One thing that may have confused you is if you’re looking at the profit and loss report, any untagged bank transactions appear in the “suspense” account under the overheads section, so you’re right in that sense that until you tag the refund it will be treated as an “expense” in P&L.

Thank you Ian , I really appreciate your help . I have managed to clear them now and ‘think’ I know what I am doing with these

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