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 Customer Credit Downloads 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 the organization's base currency and the actual cash spent amount converted to the organization's base currency, realized gain-loss will take place. This is further explained in When does realized FX 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 spent 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.
You can also adjust the payment rate if the one fetched by Jaz is not the rate you want to use for the payment.
Q7. When does realized FX gain-loss (RGL) happen, and how is it calculated?
RGL happens when the following conditions are fulfilled:
There is a difference between the customer refund amount converted to the organization's base currency, and the cash spent converted to the organization's base currency.
The following customer refund/cash spent currency combinations take place:
Customer refund currency | Cash spent currency (Actual cash paid out to 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 refunds:
Realized FX (Gain)/Loss = (Cash spent / Payment rate) - (Customer refund amount / Transaction rate)
Where:
Cash spent: The amount spent (paid out) for the recorded customer refund
The customer refund amount will be equal to the cash spent amount, if the customer credit note and refund account are in the same currency.
Payment rate: The exchange rate for the refund payment (cash spent) (1.00 if the refund payment is in the organization's base currency)
Customer refund amount: The amount recorded as refunded for a customer credit note
This amount amount may be the entire customer credit note's amount, or a part of it (partial refund).
Transaction rate: The exchange rate on the customer credit note (1.00 if the customer credit note is in the base currency)
FX gains are recorded as negative expenses, while losses are recorded as positive expenses to the FX Realized (Gains)/Loss account.
In other words,
FX gains are recorded if the customer refund amount in base currency is greater than the cash spent in base currency at the exchange rate on payment date.
FX losses are recorded if the customer refund amount in base currency is less than the cash spent in base currency at the exchange rate on payment date.
Example 1 - The customer refund is recorded in EUR, cash spent in USD and the organization's base currency is in SGD:
Cash spent: 65.00 USD
Payment rate: 1.00 SGD = 0.74338000 USD
Customer refund amount: 55.00 EUR
Transaction Rate: 1.00 SGD = 0.68413000 EUR
Hence, in this case:
Realized Loss - 7.04 SGD = (65.00 / 0.74338000) - (55.00 / 0.68413000)
Example 2 - The customer refund is recorded in USD, cash spent in SGD and the organization's base currency is in SGD:
Cash spent: 70 SGD
Payment rate: 1.00 SGD = 1.00 SGD (Since SGD is the base currency)
Customer refund amount: 55.00 USD
Transaction Rate: 1.00 SGD = 0.74338000 USD
Hence, in this case:
Realized Gain - (3.99 SGD) = (70.00 / 1.00) - (55.00 / 0.74338000)
Q8. 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.
Q9. 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.