Wen We will do Refund????

[rudraerp]

Hi Frnz,

When we will do Refund? and Pls give me the scenario on it?

I would be thankful if u guys give replay.

[hiszaki]

Hi rudraerp

If you talk about AP refund, this is the scenario.
If you create a debit memo for supplier in AP then need to enter the amount which the supplier paid to you then you can enter the payment using refund type.

Refund type used to enter the amount from supplier to less the supplier statement.

Thanks
Hisham

[udaya6]

Hi Rudra,

When we do payment to supplier if the payment leads to an excess payment then you have to create a CREDIT or DEBIT memo TO refund the EXcess amount...Take Negative values of the amount in the invoice and while doing payment select payment type as REFUND and do the payment from Cash or Bank A/c...

[rudraerp]

Thanks for ur clarification hiszaki and Uday.

[sekhardivvi]

Hi,
When we will do Refund?

Sometimes we might have paid the excess amount or Prepayment.Now you want to get back the said amount at the time we need to go for refund scenario.

How to process the refunds:-\

<b>Refund Scenario</b> - A supplier will send a request for a deposit of prepayment to the Accounts Payable group. The following is a basic overview of the standard account suggested by Oracle for the entry of a prepayment with a refund from the supplier.

1. Enter a prepayment invoice to the supplier.

Prepayment Account (default) - DR.
Liability Account - CR.

2. Pay the prepayment invoice to the supplier.

Liability Account - DR.
Cash Clearing Account - CR.

3. Reconcile payment in cash management.

Cash Clearing Account - DR.
Cash Account - CR.

The supplier sends a refund check for ?some amount? (XX) of the original prepayment.
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4. The Accounts Payable person enters a ?dummy? invoice with invoice number ?Refund ****XX? in the amount of the refund.

Expense Account DR. ******Cash Account workaround.
Liability Account CR.

5. Match the invoice to the original prepayment invoice.

Liability Account DR.
Prepayment Account (default) CR.

___________________________________________________________________________________________
At this point, the refund has never been officially recorded in Payables or in Cash Management. The refund will not show any or Oracle?s standard reports. Oracle?s standard process for recording refunds of prepayments includes an additional step to record the refund in Payables and in Cash Management.

6. The Accounts Payable person enters a ?dummy? Debit Memo.

Liability Account DR.
Expense Account CR.

7. The debit memo is ?paid? with the entry of the refund check.

Cash Clearing DR.
Liability Account CR.

8. The refund is reconciled through Cash Management

Cash DR.
Cash Clearing CR.
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******The Cash account can be used for logging the payment to the correct GL account. However, there are no provisions to have the refund show up on the AP standard reports or to be cleared through Cash Management.