Refund in Fusion Payables

Refunds

When a supplier or employee sends you a refund for an invoice payment you have

made, you can record the refund in Payables. A refund closes out an outstanding credit

balance, so you are making a negative payment for a credit balance. The credit

balance can consist of the outstanding balance of any combination of the following

documents, if the sum is negative and equals the refund amount:

• Invoices

• Debit memos

• Credit memos

• Expense report

Paying these documents with a refund records each document as paid, and gives you a

complete supplier transaction history.

Business scenario for refund:

For example, suppose you want to stop doing business with a supplier. You have an

overall $100 credit balance with the supplier. The supplier sends you a $100 refund for

the credit balance, which consists of a credit memo of $250 and an unpaid invoice of

$150. You enter a $100 refund (a $100 negative payment), and apply it to the invoice and

credit memo. After you apply the refund, the invoice and credit memo are recorded as

paid, and you have no outstanding documents for the supplier.

When you record a refund, Payables debits either your cash or cash clearing account

and credits either your expense or liability account, depending on whether you use cash

or accrual accounting.

You can take discounts on payables documents you pay with a refund.

Note: If you withhold taxes at payment time, Oracle Payables does not

automatically withhold taxes if you pay with a refund.

Refunds for Prepayments

You may receive refunds from suppliers for prepayments you have made to them, for

example, a refund for a deposit or repayment of a travel advance.

If you receive a refund for a prepayment, enter an invoice and apply the prepayment to

it. Enter a debit memo for the invoice. You can then pay the debit memo with the refund.

Voiding Refunds

You can void a recorded refund just as you void any other payment. Select the refund in

the Payments window, choose the Actions button, and use the Void option in the

Payment Actions window. You can then re-enter the refund and pay any open invoices

or prepayments for the supplier. See: Voiding Payments Using the Payments Window,

Refund type Payment:

 

Error message after selecting invoice.

 

 

 

 

 

Refund using Pay in Full Functionality:

Here are the steps for entering the invoice for Scenario where invoice was overcharged and has been paid to the supplier; a CR/DR memo will create a Refund i.e. receiving amount in the bank.

1. Create an invoice if you want to test this scenario, let’s say invoice number INV-001 with amount 1000/-
2. Create CR/DR memo for same supplier in INV-001
3. Give it a number say INV-001DR1 with amount -300/-
4. Scroll the invoice Line section to the Match Action column and select “Correct Matched Invoices” or “Correct Unmatched Invoices” from the drop down.
5. Don’t give the Invoice Line or Distribution amount.
6. Click on Go button.
7. Enter invoice number to be corrected i.e. INV-001 and click Find.
8. Click on Select and enter the amount to be corrected -300.
9. Click Correct.
10. With this, the Invoice Line and Distributions will be copied to CR/DR memo with the respective correction in Distribution lines.
11. Now perform the validation.
12. Create Accounting is optional.
13. Now pay the CR/DR memo; you can use the “Pay in Full” option or the create Payment option.
14. Select the bank account in which you are receiving the refund from supplier.
15. Enter the check number, which is used by supplier to pay the refund amount.
16. Save the Transaction.
17. The accounting in this case will debit your bank account and Credit the Liability.