Posting Member Refunds To Xero
Majestri also lets you post directly to Xero when you're returning money to members. Refunds are essentially a reversal of previous revenue transactions.
Refunds in Majestri are pretty simplistic. You can create a refund on a registration or order, but not across both. Therefore, the Xero side of it is pretty simple - there are no "revenue splits" we need to worry about. There is only ever going to be one revenue account that is getting a reversing entry.
Step 1 - Selecting Refund Payments to Post
Depending on the type of payments you selected from the Xero Summary screen, the next screen will show all of the payments of that type that require posting to Xero.
It will depend on how you refund money back to members as to how many payments you'll want to batch together for creation in Xero.
If you return money to members via EFT, which is the most common method, then you will have an item in the bank statement representing each refund payment. It will be easier to do these one-at-a-time.
Step 2 - Select Account Numbers and Confirm Posting
Let's take a look at the screen for this type of posting and have a walk-through of each setting involved in the process so you can understand what's going on.
Member Refunds Contact
To avoid unnecessary noise in your Xero contacts sheet, we recommend a single contact that represents all refunds made to a member's bank account. While you could technically create a new contact for each member that you are refunding directly, there's no real benefit to doing so.
Bank Account
This should be set up in Xero and represent the bank account used to refund your members.
Event Registration Revenue Account (May not appear)
Because you can only create a single refund at a time, this account option will only appear if you are refunding a member for an event registration (the online shop revenue account option will not appear in this case).
Online Shop Revenue Account (May not appear)
Our recommendation (and really the only way this will work) is to have a single and separate revenue account set up that reports income generated from your club's online shop. If you are refunding somebody for a shop order, this account option will appear instead of a registration revenue account.
Effective Date
By default, this will set to the current date. Whatever date it is set to is the date that the bank transaction will be created with on the Xero side. Some clubs love how accurate our posting to Xero is so much that they would like to go back through time and post historical revenue against previous bank deposits. This date gives the ability to match the historical bank statement item by setting an effective date back into the past.
Batch Narration
It is very useful to have a simple text narration that can be used to give context to people coming after you. This setting is mainly for historical record on the Majestri side, but is extremely useful to jog your memory down the track.
GST
If you are eligible for GST, then this should be switched on and left on. GST will be automatically created and reversed on the revenue transaction.
Step 3 - Verifying the Outcome in Xero
If all went well, you should be returned to the Xero Summary screen with a nice confirmation message that all posted well into Xero.
Let's log into Xero now so we can verify that everything was created as expected.
To verify that everything worked as expected, we'll navigate to the bank transaction we created. This is what you're going to be eventually reconciling with the unreconciled deposit on the bank statement. As you can see the posting from Majestri has created an 'unreconciled' Spend Money bank transaction. Note that the date of this transaction was the effective date specified in Majestri.
If we drill down into that bank transaction, we'll see the recognition of the revenue that we specified back in Majestri. Because we also switched on GST, you can also see that reflected in this transaction.
FAQ
If you've got a specific question about our integration into Xero, chances are that somebody has asked it before you.
Please head over to our Xero Integration FAQ to get the information you need.