Refund Customer the Payment

How to Refund the Payment?

We Sold 5000 USD Item to Customer and Received the Payment and Interfaced Journal Entries & Posted in GL, Later Customer Return the material and we have to Refund the Payment.

Answer:

I believe you have to unapplied the applied receipt to the transaction. Then you need to raise the credit memo due to return of goods from the customer. 

To record the refund payment in AR to the customer, you can use customer refunds standard functionality in AR.

1) Need to define refund receivables activity

2) Define approval limits for refund

3) Select refund option in Apply to filed in receipts workbench

4) Then "payment request" invoice will be created in AP so that you can avoid creating supplier as customer in AP.

Also you can:

At this moment, the customer account is zero. You should:

In AR, issue a Credit Memo to the customer

DR 5000 USD (Sales)

CR 5000 USD (Receivables)

In AR, issue a Debit Memo to the customer

DR 5000 USD (Receivables)

CR 5000 USD (Clearing Account)

In AP, create the customer as supplier and enter an invoice for him:

DR 5000 USD (Clearing Account)

CR 5000 USD (Liability)

Issue a check to the supplier

DR 5000 USD (Liability)

CR 5000 USD (Bank)

Post everything to GL, all accounts are balances.

Oracle Application

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