Issue- Receipt refund is giving error - you do not have approval limits set up for refunds

Issue:

Unable to perform refund activity in AR, getting error “you do not have approval limits set up for refunds.”

Cause:

Only the users who have approval limits defined, can only create the Manual Receipt Refund.

Solution:

Define Credit Memo Refund approval limits by currency and amount. Receivables uses approval limits with this document type whenever you attempt to refund an on-account credit memo or refund the receipt also. 

Navigation: Go to Manage approval limits task and then click on the + sign. You need to input the username, select document type as 'Credit memo refund', the currency in which the refund is created, the Minimum and Maxim approval limits.

After setup of approval limits for the user, re-login and resubmit the refund.