How to Refund a Payment With a Xero Accounting Connection?

How to process refunds with a Xero Accounting Connectivity

Our Xero accounting API cannot handle negative payments (refunds) currently. So processing refunds on a tax invoice in RoomRaccoon will need to be done a little differently.

Please see the steps below on how to process a refund with a Xero connection:

1. Make sure the full payment is linked to the Tax Invoice

2. Wait for the tax invoice to be pushed to Xero or manually push the invoice and payment to Xero via the Accounting Dashboard

3. Process the refund in Xero first before posting this to RoomRaccoon

4. Once you have processed the refund on the Xero invoice, you can go ahead and process the refund on the reservation to balance the reservation with the refund on Xero. This will not be pushed to Xero as the invoice number has already been created/pushed to your accounting software.

Why do we do this?

If you process a refund on RoomRaccoon by adding a negative amount to the payment section, this will cause an error on the Dashboard and the invoice will not be pushed to Xero and the revenue will not be generated in your accounting software. 

Good to know

• A refund always needs to be processed in your account software before RoomRaccoon to prevent this reservation. 

• These refunds will always remain in your accounting dashboard as an error until we are able to update the API to have negative payments (refunds).