I am getting confused about how to record a partial customer refund when it is refunded via PayPal and includes an element of fees i.e.

Refund is £3.80 where £3.67 is refunded from paypal account and 0.13 is fees refunded by paypal.

I issue a Credit Note on the system, but then how do I show the break down between what is coming out of PP account and PP fee refunded?

I have tried a few versions, as just keep getting more and more confused.

Kay

Hi Kay,

The basic approach is to record the reverse of the transactions mentioned on this page:
http://www.solaraccounts.co.uk/help/how-to-record-paypal-sales-fees.php

So in your case, create a credit note for £3.80, then record the refund payment for £3.80 (paid from the PayPal account). Finally record a Money Received transaction for £0.13 from the Payment Processing Fees account to the PayPal asset account.

I hope this makes sense - let me know if you need more information.

Cheers,

Id like some info on this... bit unsure of your explanation. Id like to refund £3.00 to customer (10p of which being the paypal fees)... can you break down exactly what id do please?

Thank you.

Hi Jenna,

Since you have already recorded the sale for the full amount, create a Money Paid Out transaction. Set the Type to 'General Transaction', the Paid From Account to 'PayPal Account' and the Allocate To Account to 'Sales Income' (this will reduce your income balance).

Regarding the 10p fee, if PayPal are refunding you that fee then record a Money Received transaction from the 'Payment Processing Fees' account to the 'PayPal Account'. Otherwise if PayPal are charging you a fee record a Money Paid Out transaction from the 'PayPal Account' to the 'Payment Processing Fees' account.

Regards,