Because of how Shopify manages their refunds, when they are imported into TrustFile, Alerts are created and the transaction is not added onto the return. When a refund is made in Shopify the associated record for that refund has the shipping address removed and the amount of tax is consolidated back into the sale price. This creates an Alert because there is no jurisdictional information available for the transaction to be added to a return but there does not appear to be any tax associated with the order either. This causes an issue as the amount of tax paid to the state should be refunded to the seller but as it stands in the Shopify reporting, it will not be.
To fix this you will need to complete the following steps:
- Under the Transactions tab click Advanced Filtering to expand the options.
- Filter the Transactions list to limit to Alerts, Refunds, and Shopify and ensure the "Include items not on returns" check box is selected.
- Copy the Order ID for each order and search for the order in Shopify.
- Click checkbox next to the order in the TrustFile transaction list. Click Edit.
- Update Amount, Tax, and Shipping Address to match what is found on the original Shopify order. Click Save and Exit.
The order will then be added as a credit on the appropriate state return.
Note - ensure that the amount you are entering for the refund is negative so that it is applied properly as a credit.