Refund reconciliation

Reconciling a refund is very similar to reconciling a settlement.

Refund journal entries

The reconciliation flow for active transactions where the merchant collects the shopper's payments in a set number of installments, and a refund needs to be issued, follows these steps:

  1. The payment is authorised.
  2. The payment is captured.
  3. If the shopper requests a refund, a SentForRefund journal entry is created.
  4. RefundedInInstallments journal entry is created.
    Regardless of the number of installments the total amount is split up into, a payment can have only oneRefundedInInstallments journal entry.
  5. The SentForRefund journal entry is balanced against RefundedInInstallments.
    This occurs as soon as we receive information about the installment due dates.
    The standard time frame for this operation is usually D+1.
  6. An OpenInstallment journal entry is created for each installment referring to the payment.

  7. When an installment is settled/deducted/refunded, a RefundedInstallment journal entry is created.
  8. The OpenInstallment journal entry is balanced against its corresponding RefundedInstallment entry.

Apart from the authorisation and capture steps, this flow repeats for each installment.

Cielo normally handles a refund request in one installment.