This article walks through how to create and post refund journals in Business Central when Adyen settles a payout that includes refunded transactions. The Adyen Payouts page tracks the status of each processing step through dedicated status toggles in the Refund Processing section.
Prerequisites
Before processing a refund journal, ensure the following are configured in the TAPP Adyen Parameters:
| Field | Description |
| Customer Journal Template | A Cash Receipts journal template used for refund journal lines. |
| Customer Batch Name | The batch within the above template where lines will be created. |
| Default Cash Receipt Bank Account | Used as the balancing bank account for refund journal lines. |
| Payout Refund No. Series | The number series used to generate document numbers for refund journals. |
The payout must also meet the following conditions before the refund journal can be created:
- At least one payout line of type Refunded must be present.
- Each refunded payout line must have one or more credit memos linked to it. You can verify this via the No. Of Credit Memos field on the payout lines sub-page.
Step 1 — Review Payout Lines
Navigate to Adyen Payouts and select the relevant payout. In the Payout Lines sub-page, review the lines of type Refunded. The key fields to check are:
| Field | Description |
| PSP Reference | The original payment PSP reference that was refunded. |
| No. Of Credit Memos | Number of credit memos linked to this refund line. Drill down to view them. |
| Applies-To Doc. Type / No. | The customer ledger entry the journal line will apply against when posted. |
| Notes | Any system notes or warnings about this line. |
| 📝 Note: If the Applies-To Doc. No. is blank, use the Set Applies-To action on the payout to populate it automatically before creating the journal. |
Step 2 — Create the Refund Journal
On the Adyen Payouts page, in the Refunds action group, select Create Refund Journal. This action is only available when the Refund Jnl. Created toggle is disabled (not yet created).
For each payout line of type Refunded, TAPP Adyen will:
- Look up the linked credit memos from the Adyen Refund Credit Memos table.
- Create a Gen. Journal Line for each credit memo with the following values:
| Journal Line Field | Value Set By TAPP Adyen |
| Document Type | Refund |
| Account Type | Bank Account (the configured cash receipt bank or merchant-specific bank) |
| Bal. Account Type | Bank Account |
| Amount | The net credit amount of the refund payout line |
| Currency Code | Derived from the payout line’s gross currency |
| External Document No. | The Settlement PSP Reference (up to 35 characters) |
| Description | Settlement PSP Reference + Payment PSP Reference |
On success, the Refund Jnl. Created toggle on the payout header will switch to enabled (blue) and a confirmation message will appear. If creation fails, an error message is displayed and no lines are committed.
Step 3 — Review the Journal
Before posting, you can open the Cash Receipts Journal (using the template and batch configured in TAPP Adyen Parameters) to review or adjust the generated lines. Each refund line will have the Adyen Payout PSP Reference populated in the Adyen Payout PSP Reference field on the journal line, linking it back to the originating payout.
| 📝 Note: Deleting a journal line linked to an Adyen payout will prompt you to confirm deletion of all journal lines for that payout — not just the individual line. |
Step 4 — Post the Refund Journal
On the Adyen Payouts page, in the Refunds action group, select Post Refund Journal. This action is only available when Refund Jnl. Created is enabled and Refund Jnl. Posted is not yet enabled.
TAPP Adyen will post all journal lines in the configured Cash Receipts journal batch that are linked to this payout. On successful posting:
- The Refund Jnl. Posted toggle will switch to enabled (blue).
- The resulting G/L Register number is recorded against each payout line in the Refund G/L Reg. No. field.
| 📝 Note: Once a journal is posted it cannot be unposted. If corrections are needed after posting, a reversal or correcting journal entry must be created manually. |
Status Toggles Reference
The following status toggles on the Adyen Payouts page relate to refund journal processing:
| Field | Description |
| Refund Jnl. Created | The refund journal lines have been generated for this payout. |
| Refund Jnl. Posted | The refund journal has been successfully posted to the ledger. |
Important: Refunds Originated Through TAPP via a Credit Memo
| ⚠️ Important: This step is required when the refund was initiated through TAPP by posting a Sales Credit Memo with Enable for Adyen Refund toggled on. Skipping it may result in the refund journal line being unable to apply correctly, leaving open entries in the customer ledger. |
When a refund originates through TAPP, Business Central posts a Sales Credit Memo and sends the refund request to Adyen. That credit memo initially exists as an open customer ledger entry.
When Adyen later reports this refund in a payout settlement, the refund payout line needs to apply against the credit memo. However, for Business Central to allow this, the credit memo must first be applied to the original invoice.
Required Manual Step Before Creating the Refund Journal
- Open the Posted Sales Credit Memo related to the refund.
- Navigate to Apply Entries on the credit memo’s customer ledger entry.
- Manually apply the credit memo to the original sales invoice that was refunded.
- Post the application.
Once the credit memo is applied to the invoice, return to Adyen Payouts and proceed with Create Refund Journal and Post Refund Journal as described above.
Related Articles
- Processing Cash Receipt Journals for Adyen Payouts
- Issue a Refund for an Adyen Payment
- Processing Adyen Chargebacks Through a Payout
- Parameters