R12 AR Refund Functionality

1) Completed Credit memo in AR

2) Click on Action (in the toolbar) -> application

3) Click on Refund Attributes button

4)Enter the payment method, payment term and pay group
Click Apply.

Save

5)Enter the payment method , payment term and pay group
Click Apply.
Save

6)Refunds Status Button will Appear after saving . Click on Refund Status button to see the invoice details

7)AP invoice created

the invoice created in AP is of type Payment Request and the supplier number and supplier sit name will not be populated for this invoice.

Accounting Entries

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AR Credit memo Accounting Entries

Revenue a/c------------Dr
To Receivables a/c----Cr


Accounting Entries in AR for Refund

Receivables a/c-------Dr
To Refund a/c---------Cr

AP Invoice Accounting Entries

Item Expense (Refund) a/c---------- Dr
To Liability a/c------------------------- Cr