Partial refunds on discounted baskets: reconcile the remaining sale

Review the partial return with the original receipt and promotion terms beside you. Confirm the customer remedy and tax treatment for the actual return.

Identify the original discount before calculating

A fixed basket discount, a percentage reduction and a conditional bundle price can produce different item allocations. Keep the original receipt and promotion terms. A current product price is not a substitute for the price and discount recorded when the customer bought it.

Square distinguishes itemised refunds from custom partial amounts. Its itemised refund reflects the selected item's taxes and discounts; the reporting of a custom amount needs separate checking. Preserve the original line detail in either workflow.

Inspect a fictional proportional allocation

Line	Before discount	Allocated discount	Paid incl. GST	Illustrative GST
Item A, returned	$110	$10	$100	$9.09
Item B, retained	$220	$20	$200	$18.18
Whole basket	$330	$30	$300	$27.27
Approved refund of A	$110	$10	$100	$9.09
Remaining sale, B	$220	$20	$200	$18.18

Fictional AUD example. It assumes both items are fully taxable, a proportional discount and approval of a $100 refund. Tax allocation and entitlement need practitioner review.

The discount is one-third against Item A and two-thirds against Item B. The cash check is $100 refunded + $200 remaining = $300 originally collected. The displayed GST uses rounded line amounts: $9.09 + $18.18 = $27.27. This is an illustration of the stated assumptions, not an instruction to use those figures for every basket.

Keep a bundle decision separate from the cash check

If a promotion depended on buying both items, retain its wording and have the remedy reviewed. Don't automatically remove the entire discount from the retained item or refund its undiscounted shelf price. Document the decision and the evidence supporting it before the payment correction.

The ACCC refund guidance explains that sale items still have consumer guarantees. A till's default refund suggestion is not a legal determination. The consumer-guarantees guide covers that separate question.

Check the remaining tax and inventory records

For mixed GST classifications, keep the discount allocation beside each item and ask your practitioner to check the adjustment. Don't divide an entire mixed refund by eleven. Confirm whether the export reduces quantity, sales value, tax and stock, and whether a separate integration will repeat any of those changes.

Keep damaged returned stock separate from stock approved for resale. The physical return and the payment refund may occur at different times; each needs a reference to the same original order.

Reconcile and retain the evidence

Match the refund ID to the provider statement and retain the resulting item balances. Use the processing-fee check for costs that stay with the business and the cross-channel return checklist where an online sale is returned in store. The payments hub brings those tasks together.

Key takeaways

• Preserve the allocation on the original receipt.
• Reconcile refunded and retained values to the amount collected.
• Review tax and customer-entitlement assumptions before posting.

Discounted basket return
Original receipt / items / quantities:
Discount type and recorded allocation:
Original item tax classifications:
Item returned / reason / agreed remedy:
Refund amount and ID:
Remaining item balances:
Tax adjustment reviewed by / date / reference:
Stock return recorded once:

Where to get help

• Square: customer refunds and fee treatment
• ACCC: repairs, replacements and refunds