How to manage a partial refund with Xero

Once you have requested a partial refund from an invoice paid in Xero and the funds have been returned to your customer you can follow these steps to manage the partial refund in Xero.

Prerequisites:

1. The invoice came from Xero to Pencil.
2. The invoice was Paid and then partial refunded.
3. The initial invoice payment was disbursed to you before the refund was processed.
4. The invoice doesn't exist in any other system like an inventory system (Cin7 Core/Unleashed).

Steps to Manage a Partial Refund in Xero:

1. Once the refund is completed, you can create credit note in Xero and using the Pencil contact with the "Pencil Clearing Account" so that the refunded amount will balance the Pencil Clearing Account.
2. If you need help with this please reach out on our live chat or email us at support@pencilpay.com.

Please note that in the coming months we will be updating the full and partial refund workflow to automate this fully for you so your Xero account is balanced and there is no additional work required by you. We will update this article once done.