Refund Accounting in AR

[rajiv_erp]

Hi,

Can anyone explain what is the accounting of Refund in AR Release12.

Thanks and Regards,

Rajiv

[ayat]

look Rajv,

J.E. of Refund in AR are as follows :-


a-At Transaction Time
Dr. : Receivables..........x1
Cr. : Revenues....................x3


b-At Receipt of Standard (After it has been Cleared of course in Cash Management) :-

Dr. : Cash Clearing.....x4
Cr. : Receivables.................x1


**To Refund :-
---------------------

a- Cancel the Receipt ,Not by Reversing , But to Refund This Time :-

"Refund"..will Re-open the Receivables account & gives no. to the invoice created in AP "Invoice Overview Button" , after "Refund Attributes" :

Dr. : Receivables.....x2
Cr. : Refund....................x5 (intermidiate account between AR & AP )


b- So U need to Cancel the invoice/part of , through Credit Memo (to close the opened receivable account & the revenues ,as well :-

-Credit Memo:-
Dr. : Revenues..........x3
Cr. : Receivables.............x2




**Switch to AP :-
---------------------


1- In invoice-wokbench , Search for an invoice :-

- Type ayment Request
- NUMBER : that created in AR @ Refund Time & given in : Invoice Overview
- Trading Partner field : Customer Name
- Approved
-Never Validated
-Accounting : No



Dr. : Refund ..... x5 (Appears with "Expense Item" Prompt)
Cr. : Liability.............x6 (grabbed from Financial Options )




2 -Actions : Pay In Full

Dr. : Liability.....x6
Cr. : Cash Clearing........x4


Kindly Check The Solution & Feed me Back ...

Thanks,
ayat

[ayat]

i am sorry , i need to correct a piece of info i have provided , about the status of the AP invoice it will be :

- validated
accounted : NO
Approval : Not Required

Thanks !

[rajiv_erp]

Hi Ayat,

Thanks a lot, I will try to replicate in the application for clearer picture.

Best Regards,
Rajiv