Why the Vendors are Getting Negative Withdrawal Balances?

Dokan Multi Vendor Documentation

If you are seeing a negative balance on your seller dashboard’s withdrawal balance, it is likely due to a scenario where the seller has issued a refund to a customer after funds from a sale have already been withdrawn. Here is an example scenario:

A customer purchases a product for $100.
$100 is deposited into the admin’s account (e.g., PayPal).
The admin deducts a 10% commission, leaving the seller with a withdrawal balance of $90.
The seller withdraws the balance of $90.
A refund is requested, and the seller issues a refund of $100.

So, if a refund is issued after the withdrawal has been processed, the seller’s withdrawal balance will indeed go into a negative value. This mechanism ensures that the sellers are accountable for the refunded amount they earn. However, the subsequent sales will be used to offset this negative balance until the refunded amount is fully recovered.

Rest assured that this process is designed to maintain accountability and ensure that sellers cover any refunds issued, even if they have already withdrawn their earnings.