[GNC] How can I refund this payment through PayPal, using business feature?

[Dr. David Kirkby]

I think I have achieved this with two reversing transactions, done in the
following order.

1)
Credit: Liabilities:Accounts Payable:PayPal
Debit: Expenses:Postage and Delivery

That makes the balance on Liabilities:Accounts Payable:PayPal -*£1 *

2)
Debit: Liabilities:Accounts Payable:PayPal
Credit: Assets:Current Assets:Checking Account

That seems to get back to where I started, with £100, and zero everywhere
else.




On Wed, 21 Dec 2022 at 18:52, Dr. David Kirkby <
drkirkby at kirkbymicrowave.co.uk> wrote:

> I'm trying to work out how to refund a payment, made to a vendor (Royal
> Mail) using PayPal to pay for this.
>
> The attached file is very similar to the standard business accounts, with
> the bare minimum of changes needed to demonstrate my problem.  The only
> real changes I have made are
>
> 1) Added a PayPal account - Assets:Current Assets: PayPal
> 2) Made Liabilities:Accounts Payable a placeholder account.
> 3) Added Liabilities: Accounts Payable:Bank
> 4) Added Liabilities: Accounts Payable:PayPal
> 5) Added Royal Mail as a vendor.
> 6) Set the opening balance on the checking account to £100. The PayPal
> balance is £0.
>
>
> *Next I generated a Bill for Royal Mail for £1 for postage, and posted
> that to *
>
> *Liabilities: Accounts Payable:PayPal *
>
> *using the expense account Expense:Postage and Delivery. *
>
>
> *Next I paid PayPal, using the bank account. *
>
>
> *At this point the expenses risen to £1 due to the postage, and the
> balance of the bank account has reduced from £100 to £99. *
>
> The
> *£1 paid was actually for Royal Mail to collect the package, but I
> realised it would not be ready in time, so cancelled the collection. *
>
> I assume there are going to be 2 stages to this.
> 1) Royal Mail gives a *£1 *refund to PayPal.
> 2) I transfer the PayPal balance of *£1 *back to my bank account.
>
> If this is the way to go, I know how to do the second part of this, but
> I'm totally lost about how to do the first part.
>
>