Currently, for Squre for Retail app as well as on Square Dashboard, when partial refund (refunds by amount) is issued for an item instead of returning the full amount, it does not reflect on Item Sales report. This partial refund does get reflected in the Sales Summary report causing a discrepancy between these two reports. One has to look at the Sales Summary report and manually subtract the partial refund amount to match.
I will be glad to walk though the issue if needed.
Thanks,
Rajshree
Square Community