how do i issue refund after item has been returned.

[ash_05]

Hi there 

I have accepted a return through paypal, My funds have been held, where do i update that i have recieved the item back and release the funds. 

She opened an ebay return then closed it then escalated to paypal.

I have tried looking under case id, transaction id, resolution centre. 

there is no option to update that item has been returned sucessfully. 

please help it has been a headache already! 

thanks