Tagging Shopify Refunds on PayPal - Originally paid from my business bank account

Accounting
1

Hi,

I paid for Shopify monthly subscriptions from my Starling bank business account in GBP.

Shopify charged me for 29 USD. The funds were automatically converted.

For some reason, Shopify refunded me to my PayPal USD account instead of refunding me to my Starling business account.

How should I tag my refund transactions? The original payment entry is on my Starling business account, and that is in GBP. I got the funds in USD.

Thanks.

2

If you have an invoice for the subscription then you’ll need to credit this - when you create the credit you can then create the bank transaction from this, however, if the money was received back into the Paypal account then I would mirror this in QuickFile

3

Hi @QFBeth

What do you mean by “mirroring this”? Should I create a payment transaction inside my PayPal USD account for 29 USD, and then credit note this? Then, making a note on what have happened and point to the original entries in my Starling business account?

4

Hi @Mark_Kajdi1

What i mean is that whatever has happened in the bank, so if the money has been returned to paypal then this is how you should show it in QuickFile

5

@QFBeth

Could you help me how to tag these refunds? The purchase entry in is my Starling account. The refund entry is in my PayPal USD account. This shows exactly what happened. My problem is that I can’t tag this refund to a corresponding invoice as it was on an another bank account and in a different currency.

6

Hi @Mark_Kajdi1,

So the original invoice for 29 USD - is this showing in QuickFile as a USD invoice or GBP invoice?

7

Hi @QFBeth

The invoice I got from Shopify shows 29 USD

is this showing in QuickFile as a USD invoice or GBP invoice? → I paid the invoice from my Starling account that is in GBP, so the original entry (where I paid it from) shows a GBP amount I actually paid for Shopify. So it is a GBP invoice inside QF.

8

Hi @Mark_Kajdi1

I’m sorry there has been a delay in coming back to you about this topic. I’m not sure why it has been missed until now.

When you created the original Shopify invoice within QuickFile, did you enter it as a GBP or USD purchase?

If you entered it as a USD purchase, you can then tag a GBP payment to it using the following method:

Then when creating the Credit note for the invoice, you can create this in USD and tag it to the paypal account in the same currency.

I hope this makes sense, but if you have any further questions, please don’t hesitate to get back in touch.

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