Hi Hasan,

Just wanted to know how AR refunds work in r12 and how it intracts with AP.

For example we have received a payment(wire transfer) from our customer and after receiving the payment against a sales invoice we realized that we have been overpaid and now we have to do a refund.

Thanks & Regards

Sunny

I have not covered refunds in my video yet. Here are few points:

11i:
Create a debit memo in receivables.
Use clearing account.
The receipt is matched to this Debit Memo.
Then an invoice is created in Payables for this customer after creating a supplier.
The same clearing account is used in the invoice so that it could offset the balance.
The invoice us paid normally.
Bank reconciliation takes place.

R12:
Oracle Receivables is fully integrated with Oracle Payables for the refund process.
Receivables submit the refund request to Payables.
The Payables process refunds through Oracle Payments after gong through the approval process.
"Refund Status" button is available on the Receipt Application window to view the refund status.
This open up AP workbench.

Hope that helps.