AP - Oracle R12 Account Payables Refund Process Payables

In first 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. Now pay the Invoice

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AP - Oracle R12 Account Payables Refund Process Payables

3 Create CR/DR memo for same supplier in INV-RF1 and Give it a number say INV-CMRF1 with
amount -300/-

4. Scroll the invoice header section to the Match Action column and select “Invoice” from the drop down.

5. Don’t give the Invoice Line or Distribution amount.

6. Click on Corrections button.

7. Enter invoice number to be corrected i.e. RF1 and click Find.

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AP - Oracle R12 Account Payables Refund Process Payables

8. Click on Select and enter the amount to be corrected say -200 or the total amount -300.

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AP - Oracle R12 Account Payables Refund Process Payables

9. Click Correct.

10. One note will appeared click on Ok

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AP - Oracle R12 Account Payables Refund Process Payables

11. Now perform the validation.

12. Now pay the CR/DR memo; you can use the “Pay in Full” option or the Payment window.

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AP - Oracle R12 Account Payables Refund Process Payables

13. Select the bank account in which you are receiving the refund from supplier.

14. Enter the check number, which is used by supplier to pay the refund amount.

15. Save the Transaction.

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AP - Oracle R12 Account Payables Refund Process Payables

16. The accounting in this case will debit your bank account and Credit the Liability.

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AP - Oracle R12 Account Payables Refund Process Payables

Accounting Entry for Refund:

CR/DR Memo
Liability DR
Expense CR

CR/DR Memo payment

Bank DR
Liability CR

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