Applying Refunds

Knowledge Base → Invoicing → Refunds

Stripe Refunds

If your organisation uses Stripe, staff can process refunds for payments made through the platform. Refunds can be issued up to the value of the original Stripe payment, and most refunds can be handled automatically.

Refunds for Single-Invoice Payments

When a user pays one invoice per transaction, Mition can automatically identify which invoice the refund relates to.

• The refund is applied cleanly inside Mition
• Stripe begins processing the refund immediately
• Funds return to the customer within 3–7 business days

This is the simplest and most common scenario.

Refunds for Multi-Invoice Payments

If a user pays for multiple invoices in a single Stripe transaction, Mition cannot automatically determine which invoice(s) the refund should be applied to.

A refund in this case could relate to:

• one of the invoices
• several of the invoices
• a partial amount spread across multiple invoices

Because of this ambiguity, these refunds must be managed manually.
Staff should:

1. Decide which invoice(s) the refund applies to
2. Update those invoices manually in Mition

What Happens After a Stripe Refund Is Issued?

Once a refund is processed:

• Stripe marks the original payment as partially or fully refunded
• Mition updates the internal invoice status and refund amount
• Xero is not updated automatically
• Funds return to the customer in 3–7 business days

Manual Refunds in Mition

If you need to record a refund manually, you can create a negative invoice in Mition.

Negative invoices:

• behave correctly within Mition’s internal accounting logic
• allow you to record the refund for reporting and audit
• are not sent to Xero

❌ Do Negative Invoices Sync to Xero?

No.
Mition does not:

• send negative invoices to Xero
• create Xero credit notes
• sync credit notes between Mition and Xero

Why?

• Xero rejects negative ACCREC invoices
• Xero requires refunds to be handled through Credit Notes
• Automating credit-note creation adds major complexity:
  linking to the correct original invoice
  correct GL + tracking allocation
  partial refunds
  applying credit notes to open invoices
  payment reversals
  avoiding accountant-level mistakes

Many organisations prefer to manage credit notes within Xero directly.

So Mition keeps refund behaviour internal, and leaves Xero’s accounting treatment to your finance team.

Recommended Monthly Xero Reconciliation Process

To keep Xero accurate, we recommend a simple monthly workflow:

1. Run a refund report in Mition/Stripe

Identify all invoices with full or partial refunds during the month.

2. Update Xero

For each refunded invoice, create either:

• a Credit Note, or
• a payment reversal,

depending on your organisation’s accounting practice.

3. Reconcile Stripe payouts

Match Stripe’s refund transactions to the credit notes or payment reversals during Xero’s bank reconciliation process.

This keeps Mition, Stripe, and Xero fully aligned.