Q1. How do I add a new refund method type for a customer refund?
You cannot add a new payment method type for refunds.
Q2. Can I download a receipt for a refund?
Yes, you can download the payment advice. Refer to Can I download the refund advice for a refund? for more information.
Q3. How do I record a refund for a customer credit?
Refunds can only be recorded after a customer credit note is created. Ensure to fill in all the details to save.
Q4. Can I record a partial refund for a customer credit?
Yes, you can. Under the Customer Refund Amount, enter an amount that is less than the maximum customer credit note amount.
This will result in a partial refund, where only part of the customer credit note is refunded.
Q5. What happens if I receive a refund payment in a different currency than the refund payment I record?
If there is a difference between the recorded amount converted to base currency and the actual cash received amount converted to base currency, realized gain-loss will take place. This is further explained in Q7. When does realized gain-loss (RGL) happen, and how is it calculated?
Q6. Where is the payment rate fetched from if the currencies don't match?
If the cash received currency does not match the recorded refund currency, there is a possibility of a realized gain/loss due to the fluctuations in the exchange rates.
Jaz fetches a custom rate if available on the date of the payment. If not, the rate is fetched from 3rd party services.
Q7. When does realized gain-loss (RGL) happen, and how is it calculated?
RGL happens when the following conditions are fulfilled:
There is a difference between the transaction (customer refund) amount converted to the base currency of the organization and the payment (cash received) amount converted to the base currency of the organization.
The following recorded customer refund/cash received currency combinations take place:
Recorded Customer Refund Currency | Refund Payment Currency (Actual cash received from customer) | Is there RGL? |
Organization's base currency (e.g. SGD) | Non-base currency (e.g. USD) | Yes |
Non-base currency (e.g. USD) | Organization's base currency (e.g. SGD) | Yes |
Non-base currency (e.g. USD) | Non-base currency (e.g. USD) | Yes |
Non-base currency (e.g. USD) | Non-base currency (e.g. EUR) | Yes |
Organization's base currency (e.g. SGD) | Organization's base currency (e.g. SGD) | No |
RGL is calculated this way for customer credit notes:
Realized FX Loss/Gain = (Transaction Amount / Transaction Rate) - (Payment Amount / Payment Rate)
Where:
Transaction amount: the recorded customer refund amount
Transaction rate: The exchange rate used between the non-base currency and the base currency on the day of the transaction
Payment rate: The exchange rate used between the non-base currency and the base currency on the day of refund
Payment amount: The amount received for the customer credit refund
Example 1 - The refund is recorded in EUR, cash received in USD and the organization's base currency is in SGD:
Transaction amount: 55.00 EUR
Transaction Rate: 1.00 SGD = 0.68413000 EUR
Payment Rate: 65.00 USD
Payment rate: 1.00 SGD = 0.74338000 USD
Hence, in this case:
Realized Gain - 7.04 SGD = (55.00 / 0.68413000) - (65.00 / 0.74338000)
Example 2 - The refund is recorded in USD, cash received in SGD and the organization's base currency is in SGD:
Transaction amount: 55.00 USD
Transaction Rate: 1.00 SGD = 0.74338000 USD
Payment amount: 70 SGD
Payment rate: 1.00 SGD = 1.00 SGD (Since SGD is the base currency)
Hence, in this case:
Realized Loss - 3.99 SGD = (55.00 / 0.74338000) - (70.00 / 1.00)
Q8. What is the transaction rate for a refund?
Transaction rate refers to the exchange rate used between the non-base currency and the base currency on the customer credit note's date.
This may be the organization's custom rate, a transaction-level exchange rate, or a 3rd party market rate that is being used.
Q9. How will deleting a tax profile impact my refund records?
Deleting a tax profile will not have an impact on any refunds that have already been made and recorded.
However, you will not be able to select the deleted tax profile moving forward when creating new customer credit notes, which may have effects on pre and post-tax calculations.
Q10. How will making an account inactive impact my refund?
Making an account inactive will not have an impact on any refunds that have already been made and recorded.
However, you will not be able to select the inactive account as a refund account (in the case of cash and bank accounts) moving forward, until the account is active again.