Refunds & Disputes for Business Central

When a payment processed through Paystand is later disputed by the provider (e.g. bank or card network), the integration with Business Central ensures that financial records remain accurate and that the invoice can be repaid. The flow maintains consistency between Paystand and BC’s financial ledgers.

Dispute workflow

1. Payment Application

• A payer makes a payment through Paystand.
• That payment is automatically applied to the corresponding invoice in Business Central (BC).

2. Dispute Initiated

• The payment is disputed (e.g. chargeback) by the provider.

3. Unapplying Payment in BC

• In Business Central, the payment is unapplied from the invoice.
• This step disassociates the payment from the original invoice, allowing the invoice to be considered unpaid again.

4. Reversal in Customer Ledger

• The payment is reversed in the Customer Ledger Entries.
• A Dispute GL entry is created to record the impact of the dispute.
• This ensures the customer’s balance no longer reflects the now-disputed payment.

5. Invoice Reopened in Paystand

• In Paystand, the invoice is reopened and available for repayment.
• The payer can then repay the invoice through Paystand.

Exceptions & Limitations

• Multiple Payments on an Invoice
  • If an invoice has multiple payments (e.g., X and Y), and the disputed payment is X (not the most recent):
    • BC requires payments to be unapplied in reverse chronological order.
    • You must first unapply Y, the most recent payment, before X (the disputed one) can be unapplied. Otherwise, BC will raise the error: Cannot unapply payment X before unapplying payment Y.
• Multi-Invoice Payments
  • If a payment covers multiple invoices:
    • Only the first invoice associated with the disputed payment will be unapplied.
    • Other invoices tied to the same payment will remain applied unless handled manually.

Refunds

When a refund is issued, invoices remain closed and are not automatically reopened. The merchant must create a new invoice to charge again.

Manual Payment Application

When a merchant manually applies a payment or credit memo to an open, posted sales invoice in Business Central, our system detects the update and reflects the new remaining amount in Paystand.