a customer got refunded on Shopify, how does that show in my books
A refund flows through the same payout that carried the sale, and Talisk reverses both sides of it.
Concretely, when you refund an order:
- the revenue is reversed, so your sales figure drops by the refunded amount
- the sales tax you'd collected is reversed too: you're no longer holding it
- if cost tracking is on, the COGS is reversed at the original cost, so the returned item doesn't leave a phantom cost sitting in your books
- the refund reduces that period's payout, which is why the deposit is smaller
You don't post anything by hand. The important part is that a refund is a reversal, not a new expense: recording it as a cost would understate revenue and overstate expenses at the same time, and quietly distort your margin.
Answered by the Talisk HQ assistant, reviewed by us
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