Handling reconciliation for refund scenarios is very important to keep you accounting data correct and up-to-date. Doing this in Xero is easy. Let’s understand this with an example:
Let’s assume you have sold a product worth $100. The payment fee for your gateway is 2%.
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After a payment fee of $2, remaining $98 goes to your bank account. From there, it comes to your Xero account
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Using Pipemonk, you synced the data from your Online store (Shopify) to Xero account in the respective deposit account.
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Now, you can reconcile the 2 account to ensure the books are accurate and up to date.
Now assume, on this order, you need to do a refund of $50.
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We create a CREDIT NOTE of $50 in Xero for this transaction. All you need to ensure is that the “Bank Account” is selected as deposit account (as shown in the below image). Otherwise, it will affect the reconciliation process.
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If the deposit account is not “Bank Account”, then
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Click on the ‘Account’ tab.
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Then click see all. It will open a new page where all the invoice and credit notes are listed.
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Click on the respective Credit note to open it.
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Once the Credit note is open, click Remove & Redo to change the bank account. (As shown in the below image)
Once this is done, go back to the dashboard to reconcile the two account. (Bank account and deposit account)
