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Record Refunds (Supplier Credit)
Updated over 2 months ago

Q1. How do I add a new refund method type for a refund?

  • You cannot add a new payment method type for refunds.

Q2. Can I download a PDF for a supplier refund?

  • Jaz does not support downloads for supplier refunds.

Q3. How do I record a refund for a supplier credit?

  • Refunds can only be recorded after a supplier credit note is created. Ensure to fill in all the details to save.

Q4. Can I record a partial refund for a supplier credit?

  • Yes, you can. Under the Supplier Refund Amount, enter an amount that is less than the maximum supplier credit note amount.

  • This will result in a partial refund, where only part of the supplier credit note is refunded.

Q5. What happens if I make a refund payment in a different currency than the refund payment I record?

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.

  • 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:

  1. There is a difference between the supplier refund amount converted to the organization's base currency, and the cash received converted to the organization's base currency.

  2. The following recorded supplier refund/cash received currency combinations take place:

Supplier refund currency

Cash received currency (Actual cash received from supplier)

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 (Gain)/Loss = (Supplier refund amount / Transaction rate) - (Cash received amount / Payment rate)

    • Where:

      • Supplier refund amount: The amount recorded as refunded for a supplier credit note

        • This amount amount may be the entire supplier credit note's amount, or a part of it (partial refund).

      • Transaction rate: The exchange rate on the supplier credit note (1.00 if the supplier credit note is in the base currency)

      • Cash received: The amount received (paid in) for the recorded supplier refund.

        • The supplier refund refund amount will be equal to the cash received amount if the supplier credit note and refund account are in the same currency.

      • Payment rate: The exchange rate for the refund payment (1.00 if the refund payment 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 supplier refund amount in base currency is less than the cash received in base currency at the exchange rate on payment date.

    • FX losses are recorded if the supplier refund amount in base currency is greater than the cash received in base currency at the exchange rate on payment date.

  • Example 1 - The supplier refund is recorded in EUR, cash received in USD and the organization's base currency is in SGD:

    • Supplier refund amount: 55.00 EUR

    • Transaction Rate: 1.00 SGD = 0.68413 EUR

    • Cash received: 65.00 USD

    • Payment rate: 1.00 SGD = 0.74338 USD

    • Hence, in this case:

      • Realized Gain - (7.04 SGD) = (55.00 / 0.68413) - (65.00 / 0.74338)

  • Example 2 - The supplier refund is recorded in USD, cash received in SGD and the organization's base currency is in SGD:

    • Supplier refund amount: 55.00 USD

    • Transaction Rate: 1.00 SGD = 0.74338 USD

    • Cash received: 70.00 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 / 0.74338) - (70.00 / 1.00)

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 supplier credit notes, which may have effects on pre and post-tax calculations.

Q9. How will making an account inactive impact my refund records?

  • 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.

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