Refund a PayPal Invoice
To refund a PayPal invoice, navigate to the [Receivables] workspace and select [Payments and Applications].
![Payments and Applications refund](/wp-content/uploads/2023/12/Payments-and-Applications-refund-1024x416.png)
- Click the (+) to create a new refund.
![Payments and Applications dropdown select](/wp-content/uploads/2023/12/Payments-and-Applications-dropdown-select-1024x494.png)
- Select the [Type] Customer [Refund].
![Payments and Applications customer paypal](/wp-content/uploads/2023/12/Payments-and-Applications-customer-paypal-1024x494.png)
- Search for [Customer].
- Search for the created [Payment Method].
- Select [Cash Account].
- Click (+) to add a new document under the Documents to Apply tab.
- Select the [Document Type] as [Payment].
![Payments and Applications payment dropdown](/wp-content/uploads/2023/12/Payments-and-Applications-payment-dropdown-1024x493.png)
- Enter the [Payment Reference Number].
- This can be found in the sales order under the [Payments] tab.
![Sales Orders select list](/wp-content/uploads/2023/12/Sales-Orders-select-list-1024x493.png)
- Upon adding the [Reference Nbr,] the remaining fields will auto fill and click on refresh the Payment Amount will automatically add the amount.
- Click on [Save].
![Sales Orders invoice tab](/wp-content/uploads/2023/12/Sales-Orders-invoice-tab-1024x492.png)
- The [PayPal Invoice] tab will appear.
- Click the [PayPal Invoice] tab.
![Payments and Applications paypay refund](/wp-content/uploads/2023/12/Payments-and-Applications-paypay-refund-1024x491.png)
- Click [Refund PayPal Invoice].
- A new line will appear on the table with a new PayPal Invoice number.
- The invoice status will be listed as [Partially Refunded] or [Fully Refunded] depending on the amount refunded on the order.
- The customer will receive a refund notice on the invoice in their PayPal account.