Refunds and Xero

Updated 2026-09-02

When you issue a refund in MatPilot, it's mirrored into your Xero automatically as a credit note — so your books and VAT stay correct with no manual entry.

What happens

You refund a member (full or partial) from their Payment History.
MatPilot creates an approved credit note in your Xero against the same contact, using the same VAT rate and revenue account as the original invoice.
It's VAT-inclusive with the exact tax, so your VAT return stays right to the cent.

A refund mirrored into Xero as an approved credit note against the original invoice — Your £40 refund, mirrored into Xero as an approved **credit note** against the original invoice, same contact, same 20% VAT, with a **MatPilot_refund_** reference so it nets your VAT off correctly.

Good to know

Only payments that were originally pushed to Xero can be credited — you can only credit what you invoiced.
Every MatPilot entry carries a MatPilot_ reference so you can tell them from your own bookkeeping.