User Credits

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  • Updated 3 months ago
When a giftcard is refunded, that amount is added to user credits and the user can use it later to purchase some other item. We make negative transaction in Avalara when the giftcard refund is done and create a new transaction when they purchase some other product using the credits. Will this process have any implications, since the amount always remains with us.
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s

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Posted 3 months ago

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Katina, Official Rep

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For tax purposes, Avalara wants to know about your sales and returns (negative sales). In this case, it sounds like you have:

  1. A sale, for $x
  2. A return, fox $x (resulting in a credit on their account)
  3. A sale, for $x (paid by account credit)
So what I'd expect to see in your account would be 3 transactions -- 2 SalesInvoices and 1 ReturnInvoice. The fact that payments (and credit) are handled via gift card is not something that is recorded on your transaction.
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s

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Thank you for your reply