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Understanding the "Payment Application" datasource w/ Invoice Settlement feature enabled

We have some questions about how the 'Payment Application' Datasource works when the Invoice Settlement feature is enabled.

Specifically, when using this datasource to run reports and exports we have noticed that there are additional row/lines for a single Payment that was refunded- with this logic we should only see 2 rows/lines but we are noticing a 3rd row/line. We need help understanding the logic behind how the 'Payment Application' Datasource works.






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Re: Understanding the "Payment Application" datasource w/ Invoice Settlement feature enabl

To help understand how the datasource works, you will need to understand how the Invoice Settlement model works in regards to a refund or chargeback operation. Please review the following:

1. What is Payment.UnappliedAmount?

The amount that you (the 'merchant') owe to the customer.

2. How to create a payment with unapplied amount?

You can create a payment without specifying an invoice or debit memo. Or you can unapply a payment from an invoice or debit memo. The amount will go to 'unapplied amount'.

3. What is 'Payment Application'?

Payment Application is used to track the amount change on a Payment and the balance change on the target document- like Invoice or Debit Memo.

There are two types of Payment Application:

    1. Payment Application with Invoice or Debit Memo info;
    2. Payment Application without Invoice or Debit Memo info.

For the first type A, it tells what payment is applied to an invoice or debit memo and the payment amount.

For the second type, it indicates the amount that gets changed on the Unapplied Amount of Payment.

The Payment Application cannot be created directly, it is generated by a payment operation, like `creation`, `apply` or `unapply`.

4. What will the Payment Application look like when a payment is created?

This will depend on the use case. Below are several examples to help describe how it will look:

1. Create a payment and fully apply to the invoice:

a. generate invoice with $100 > INV-001, balance: $100

b. create a payment (PAY-001) with amount $100 and apply to the invoice INV-001 with $100 at the same time

c. ONE payment application will be generated:

PA-001, apply amount: $100, Source Payment: PAY-001, Target Invoice: INV-001

d. as a result, unapplied amount on payment is $0.

2. Create a payment and partially apply to the invoice:

a. generate invoice with $100 > INV-001, balance: $100

b. create a payment (PAY-001) with amount $100 and apply to the invoice INV-001 with $80 at the same time

c. TWO payment applications would be generated:

PA-001, apply amount: $80, Source Payment: PAY-001, Target Invoice: INV-001

PA-002, apply amount: $20, Source Payment: PAY-001, Target Invoice: n/a

d. as a result, unapplied amount on payment is $20 which is tracked by PA-002.

3. Create a payment and don't apply to any invoice:

a. create a payment (PAY-001) with amount $100 and do not apply to any invoice.

b. ONE payment application would be generated:

PA-001, apply amount: $100$, Source Payment: PAY-001, Target Invoice: n/a

d. as a result, unapplied amount on payment is $100 which is tracked by PA-001.

 

(continued on next reply)

 






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Re: Understanding the "Payment Application" datasource w/ Invoice Settlement feature enabl

5. What will Payment Application look like when I unapply a payment?

This will depend on the use case as well. Below are several examples to help describe how it will look:

1. Fully unapply payment from invoice:

a. generate invoice with $100 > INV-001, balance: $100

b. create a payment (PAY-001) with amount $100 and apply to the invoice INV-001 with $100 at the same time

c. ONE payment application would be generated:

PA-001, apply amount: $100, Source Payment: PAY-001, Target Invoice: INV-001

d. as a result, unapplied amount on payment is $0.

e. unapply the payment( PAY-001) with amount $100 from invoice INV-001

f. TWO payment applications would be generated:

PA-002, apply amount: -$100, Source Payment: PAY-001, Target Invoice: INV-001

PA-003, apply amount: $100, Source Payment: PAY-001, Target Invoice: n/a

d. as a result, unapplied amount on payment is $100 which is tracked by PA-003.

2. Partial unapply payment from invoice:

a. generate invoice with $100 > INV-001, balance: $100

b. create a payment(PAY-001) with amount $100 and apply to the invoice INV-001 with $100 at the same time

c. ONE payment application would be generated:

PA-001, apply amount: $100, Source Payment: PAY-001, Target Invoice: INV-001

d. as a result, unapplied amount on payment is $0

e. unapply the payment (PAY-001) with amount $80 from invoice INV-001

f. TWO payment applications would be generated:

PA-002, apply amount: -$80, Source Payment: PAY-001, Target Invoice: INV-001

PA-003, apply amount: $80, Source Payment: PAY-001, Target Invoice: n/a

d. as a result, unapplied amount on payment is $80 which is tracked by PA-003.

6. How to refund a payment?

When the Invoice Settlement feature is enabled, only the' unapplied amount' can be refunded.

For example:

a. If a payment of $100 is created but not applied to any invoice, then the unapplied amount is $100. As a result, the merchant can refund up to the entire amount of $100.

b. If a payment of $100 is created and $20 is applied to an invoice, then the 'unapplied amount' is $80. As a result, only $80 can be used for refund.






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