invoicemagento-1.8paypalrefundsales-order
Is it possible to create an online refund to PayPal? I am going to Sales -> Orders Selecting the order I want, then select Invoices from the menu at the left and click Credit Memo, however the only option is to Credit Offline.
Am I missing something or do I need to need to configure anything extra in Magento?
I am using PayPal Websites Standard on Magento Community Edition 1.8.
These are two differing methods - Express, and Standard.
It sounds like Standard is behaving the way you want, but Express is doing Authorize-Only. This is a system configuration option under System > Configuration > Paypal > Express Checkout Settings:
To capture payment and generate an invoice immediately, set it to 'Sale' or 'Order'. I'm honestly not sure of the difference between the two.
We ended up coding a module to rewrite the core IPN Model which suppresses the automatic creation of Credit Memos when a Paypal Refund is issued. Instead, it adds an Order Comment with the Paypal Transaction ID (for reconciliation) and raises an Admin Notification that the administrator should manually create an Offline Credit Memo to correlate with the monies refunded at Paypal. This allows the administrator to mark the appropriate Order Items as Refunded, apply alterations to the amount (Adjustment Fees, etc). This is now working happily in production and can be reviewed in our Github repo.
Best Answer
By default, the community edition of Magento has refunds disabled in the Paygate Models. In order to enable them you need to create a custom Model and overwrite a protected variable.