When using Revel's Summary Integration by Product and Summary Integration by Class, Credit Memos are used to account for any decreases in sales for a given day (such actions include refunds, voids, returns and exchanges.) These Credit Memos will include the tax as well as the item price.
This means that the formula for our product and class integrations is as follows:
Invoice + Credit Memo (Always Negative) = Actual Total
The "Refund Substitute" line item appears on both the invoice and the Credit Memo. Below is that line item on the invoice:
Below is the Refund Substitute on the Credit Memo:
Because the formula for our integration is Invoice + Credit Memo = Actual Total, the two transactions net to $0; this line item is required due to the use of credit memos. It allows us to edit the tax amount on the Credit Memo.
|Item||Invoice Amount (+)||Credit Memo Amt. (-)||Total|
BBQ Pulled Pork
|Macaroni & Cheese||7.00||0.00||7.00|
|Guinness Draught Can||9.00||0.00||9.00|
|Acme Pale Ale||6.00||0.00||6.00|
|Racer 5 IPA||6.00||0.00||6.00|
Notice that the voided items have decreased not only the sales amounts by decreasing the BBQ Pulled Pork line item. By using the Refund Substitute on both the invoice and Credit Memo, the integration can then manipulate the tax amount independent of the rest of the invoice.
This line item is also used when refunding non-taxable items. By using the "Refund Substitute" as a taxable item on the invoice, we can change the tax on the Credit Memo without effecting the sales total.