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Setting Up a Refund Account in Xero

Every Retail POS customer using Xero will need to set up a refund account in Xero.

Typically, when you process a refund, Retail POS will take the amount refunded off the total amount collected using that payment type that day. For example, if you took $3000 in cash payments, and issued $50 of cash refunds, Retail POS will send $2950 of cash to Xero as the total.

Sometimes, the amount you need to refund might be MORE than the amount taken that day. For example, you took $560 of payments, but a customer needed an $800 cash refund. Retail POS cannot deduct $240 from the cash payments account. Instead, Retail POS will send $0 for the cash payments total for the day, and -$240 to the refunds account so that you can keep track of this.

To set up a refund account in Xero, follow the steps below:

  • Open your Chart of Accounts.
  • Set up a current asset account.
  • Name this account Refunds.
  • Tick the Enable payments box.
  • Save your account.

For more information on the Vend-Xero Integration, check out these articles.

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