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?
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 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.
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 (supplier refund) amount converted to the base currency of the organization and the payment (cash spent) amount converted to the base currency of the organization.
The following recorded supplier refund/cash spent currency combinations take place:
Recorded Supplier Refund Currency | Refund Payment Currency (Actual cash spent, paid to 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 Loss/Gain = (Payment Amount / Payment Rate) - (Transaction Amount / Transaction Rate), with a multiplier of -1
Where:
Payment rate: The exchange rate used between the non-base currency and the base currency on the day of refund
Payment amount: The amount spent for the customer credit refund
Transaction amount: the recorded supplier refund amount
Transaction rate: The exchange rate used between the non-base currency and the base currency on the day of the transaction
Example 1 - The refund is recorded in EUR, cash spent in USD and the organization's base currency is in SGD:
Transaction amount: 55.00 EUR
Transaction Rate: 1.00 SGD = 0.68413 EUR
Payment Rate: 65.00 USD
Payment rate: 1.00 SGD = 0.74338 USD
Hence, in this case:
(65.00 / 0.74338) - (55.00 / 0.68413) = 7.04
Applying a multiplier of -1, 7.04 * -1 = -7.04 (or realized loss of 7.04 SGD)
Example 2 - The refund is recorded in USD, cash spent in SGD and the organization's base currency is in SGD:
Transaction amount: 55.00 USD
Transaction Rate: 1.00 SGD = 0.74338 USD
Payment amount: 70.00 SGD
Payment rate: 1.00 SGD = 1.00 SGD (Since SGD is the base currency)
Hence, in this case:
(70.00 / 1.00) - (55.00 / 0.74338) = -3.99
Applying a multiplier of -1, -3.99 * -1 = 3.99 (or realized gain of 3.99 SGD)
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 supplier 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 supplier credit notes, which may have effects on pre and post-tax calculations.
Q10. 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.