Credit memo refund is a new feature in R12 that allows to create a invoice in AP from AR for the credit available for the customer in AR. To do this there is no need to create supplier record for the customer in AR manually.

Credit memo refund is a new feature in R12 that allows to create a invoice in AP from AR for the credit available for the customer in AR. To do this there is no need to create supplier record for the customer in AR manually.

Eg:

Completed Credit memo in AR



Click on Action (in the toolbar) -> application

It takes you to the receipt application form and refund Activity will be selected

Click on Refund Attributes button

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

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

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

------------------------

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