When a return or cancelation is created after you've already paid out your vendor, you will need to reconcile the amount due before the next vendor payout. In this article, we will go over the options available within Onport to do this.
It is not possible to issue a refund per se considering Onport doesn't handle transfers back to your vendors. Instead, an automatic adjustment will be created and deducted in the next automated vendor payout.
🔎 You can also potentially avoid having to refund the vendor payout if you set a number of days to delay the payments, as you can see in this article.
What triggers the vendor payout refund?
First, you will need to choose in which status you want the refund to happen. For that, go to Contacts > (choose vendor) > Payment Setup tab > Automated Payment Refunds:
How to manually refund the vendor payout
You can start the process by going to Sales > Returns and Cancellations > click the dropdown next to the order > "Refund vendor payout":
Or you can also do it from within the return itself:
What happens if the invoice has already been raised?
If the item is returned, you'll need to refund the vendor payout and a new invoice will be raised with a negative amount.
Onport will reconcile returns/refunds from vendors by adjusting the balance due and reconciling the next payout with an updated amount.
If an order is refunded after it has already been paid out to the vendor, the system will deduct this amount from the next vendor payout.
Understanding the balance tab
If you go to Contacts > (dropship provider) > Balance tab, you'll see a breakdown of all the invoices that were raised for that vendor and if you've refunded the vendor payout, you'll be able to see that information there as well.
- INVOICE - the order number the invoice belongs to.
- SHIPPING - the shipping cost of the order
- ADJUSTMENTS - Manual adjustments
- LANDED COSTS - ad hoc fees, usually associated with the shipping of a product (for example international shipping like taxes and fees, packaging costs, etc.)
- INVOICED - amount that was invoiced to the vendor
- TAX - taxes that were applied to the order
- COMMISSION RETAINED - commission retained by the marketplace
- REFUNDS - refunds issues due to returns
- SUBTOTAL - total amount expected for the vendor
- PAID - total amount paid to the vendor
- DUE - total amount due to the vendor (Due = Subtotal - Paid)