Pipemonk does sync refunds from Shopify to QuickBooks Online in a very smooth way. Refunds in Shopify can be done in two ways:
1) Restock and,
2) Not-to- restock.
To understand how Pipemonk handles refunds, we will cover different business use cases.
Use case-1: When “Restock # items” is enabled
Let’s assume there are 2 products: Product A and Product B. The selling price of product A is $65 and product B is $25. Taxes on both the products are $8.125 and $3.125 respectively. (VAT here is 125%)
When someone places an order for both the products. This is how the invoice will look like:
As you can see, here the shipping charges for both the products are $5.
After few days, customer returns product B which is of $25. On his request, you initiate refund process. This is how it looks like:
Note: you need to check the “Restock # item” option to keep the inventory status updated once you get the returned product
You can see in the image that total refund amount is $28.13 (~ 28.125) which is the sum of product B selling price and VAT 12.5% on product B.
Now, click on “Refund $28.13” tab. You need to do all this manually in your Shopify store.
Once you finish this, you need to run a sync using ZapStitch to get all the data in your QuickBooks Online company file. After the sync, this is how it looks like:
The first line item in the above image is for ‘Refund’ and 2nd and 3rd are for ‘Invoice’ and ‘Payment’ of actual order by customer.
To check details of refund receipt, click on the ‘Refund’ line item. It takes you to refund receipt (as shown below)
Note: You need to make sure that refund should be done from the same ‘Deposit account’ in which you collected the money from the order. Here, in this case, it is “Undeposited funds”. This helps in reconciliation.
This is how ZapStitch handles refunds on your orders for your Shopify store.
