Automate Refunds for Customers from AR to AP: Setup and Process (Doc ID 565407.1)

Last updated on MAY 26, 2024

Applies to:

Purpose

Oracle Receivables (AR): Receipts Workbench Information Center > Note 565407.1

In Oracle Receivables, there are 2 types of Refunds supported:

Non-credit card Refunds: This type of refund returns funds received from Non-Credit Card payments, such as cash or checks. Receivables submits a refund request to Oracle Payables, which uses Oracle Payments to create the disbursement. This type of Refund is the focus of this note.

Credit card Refunds: This type of refund returns funds received from a Credit Card payment. Receivables submits a refund request directly to Oracle Payments to create the disbursement. Payments applies the refund to the same credit card used on the
original transaction. For more information on this feature, please review <Note 1357967.1>, Credit Card Payments, Refunds and Chargebacks: Overview and Setup for Oracle Receivables Release 12


Prior to Release 12, there are a number of steps involved to do check refunds. Below is an example for creating a check refund when Allow Over-application is selected.

• Create Credit Memo.
• Un-apply the receipt for the total of the credit memo.
• Create a Debit Memo (for the amount of the credit memo).
• Apply debit memo to receipt. This causes the unapplied balance on the Receipt to go to zero.
• Generate a check from Oracle Payables to Customer.

In Release 12, AR has automated the refund process for non-credit card transactions. Receivables submits the refund request to AP, and in turn AP transacts refunds via Oracle Payments. Automated AP Refunds enables you to automate process all the way through from credit memos to refunds and enables manual refunds be done in much fewer steps.

Scope

 This document is informational and intended for Receivables users.
 Before reading this document, the user must have a good understanding of AR.

Details

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