What is covered in this video?
In this video, we explain what happens when a Shopify return is processed with a refund amount that does not match the normal calculated return value.
This can happen if you agree with the customer to refund only part of the product value instead of refunding the full amount of the returned item.
In these cases, EAS may not be able to automatically match the refund to a specific product. When that happens, you need to create a manual correction or manual discount in the EAS dashboard.
1. The customer places an order
The process starts with a normal Shopify order.
In the example shown in the video, the customer places an order in the Shopify store. Once the order is completed, it appears in Shopify and is then collected by the EAS dashboard.
It may take a short moment before the order appears in EAS, especially in a test environment.
2. A partial refund is processed in Shopify
The video then shows a return where only part of the product value is refunded.
For example, instead of refunding the full calculated item amount, you may agree with the customer to refund only €5.
Shopify will show that there is a difference between the calculated refund amount and the actual refund amount. This means the refund does not match the normal product return value.
3. Why EAS cannot always collect this automatically
When the refund amount is changed manually, EAS may not be able to connect the refund to a specific item in the order.
For example, if the order contains a product with a much higher value, but only €5 is refunded, EAS cannot always determine automatically which item or part of the item the refund should be connected to.
Because of this, the return cannot be handled automatically in the same way as a normal return.
4. EAS adds a notice to the order
When EAS cannot process the return automatically, a specific notice is added to the order in the EAS dashboard.
This notice means that EAS was not able to handle the return automatically and that manual action is required.
When you see this notice, you should create a manual correction or manual discount in the EAS dashboard.
5. Creating a manual discount in the EAS dashboard
To correct the VAT treatment, go to the EAS dashboard and open the affected order.
You will see the partial refund amount that was processed in Shopify. In the example from the video, the partial refund amount is €5.
You then need to create a manual discount for the same amount.
After entering the discount amount, create and confirm the discount.
6. VAT is calculated from the manual discount
Once the manual discount has been created, EAS calculates the VAT amount connected to that discount.
In the example shown in the video, the €5 discount consists of:
- €4.17 product value
- €0.83 VAT
This means that €0.83 of VAT can be reimbursed through the VAT reporting process.
Summary
If you process a Shopify return where the refunded amount does not match the normal calculated return amount, EAS may not be able to handle the return automatically.
In that situation:
- process the partial refund in Shopify
- check the order in the EAS dashboard
- look for the notice showing that EAS could not handle the return automatically
- create a manual discount or correction in the EAS dashboard
- enter the same amount that was refunded in Shopify
- confirm the discount
- EAS calculates the VAT connected to the discount
- the VAT amount is included in the reporting process
In short, when the refund amount is manually changed in Shopify, you may need to manually correct the VAT treatment in EAS so the refund is reported correctly.