I'm working for a client on a problem regarding some PayPal transactions. The client uses TRR reports from SFTP to process transactions in their accounting system. We now have some transactions, which are not fully represented in the TRR report, and thus we have journal entries missing in the accounting system.
One case as an example, as it is presented on the PayPal website, the case has 4 events, of which only 3 appear in TRR reports:
- Customer buys and pays for an item - appears as T0004
- Payment is on hold due to dispute - appears as T1110
- Hold is cancelled - the dispute is resolved in favor of the customer - appears as T1111
- Payment is reversed and the customer gets a chargeback - this event/transaction is missing
The result is, that the customers account receivable still has a credit in favor of the customer, which is incorrect.
My question now is: Is there supposed to be 4th transaction (and is there a system error on PayPals side because it is missing in the TRRs)? Or do we have to interpret the T1111 event twofold -> cancel the hold AND post a reversal entry? If so, what would a case where the dispute is resolved in favor of the merchant look like? I have found other cases of this pattern (T0004 -> T1110 -> T1111) in our logs, where there is no charge back (dispute resolution in our favor) and the status of the account-receivable is correct.
Would greatly appreciate an answer, and any hints/links to corresponding help topics or documentation.
Thanks
Marian
