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Refund Functionality in R12

In response to a reader's query here is small note on EBS refund functionality.

Refund processing for the Supplier and Employee

When a supplier or employee sends a refund for an invoice payment that have made, record the refund can be recorded in Payables. A refund closes out an outstanding credit balance, so you are actually making a negative payment for a credit balance. The credit balance can consist of the outstanding balance of any combination of the following documents, as long as the sum is negative and equals the refund amount:

Paying these documents with a refund records each document as paid, and gives you a complete supplier transaction history.

Refund processing for the Customer

R12 There are two refund Options Available

  1. Initiation of a customer refund by application of a credit or unapplied cash to a refund receivables activity
  2. Automated refund generation based on credit memos generated by Auto invoice
    • Check refunds
    • Credit card refunds

In R12, the refund process has been automated for non-credit card transactions from Oracle AR module. For credit card transactions, refunds are applied to the same credit cards used on the transactions in Account Receivables. For non-credit card transactions, refunds are processed via AP. Receivables submit the refund request to AP, and in turn AP transacts refunds via Oracle Payments after gong through the approval process. To view the status of the refund, one can select the button "Refund Status" off the Receipt Application window which brings to the AP workbench. Following are the Refund process generated at receivable and then pass to payable to further processing and payment

Those who does not use Oracle AR as receivable, the refund data with customer basic information are fed into the Payable invoice where Customer will be created as one time supplier with minimum setup and check will be generated against the invoices created from refund data.

In case if you need some more thoughts on setup and steps , drop me offline