R12 AR Credit Memo Refund

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