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.