Whenever you credit a paid invoice, you must decide how to credit the overpaid funds to your customer. Do you want to put the credit amount on account? Or, do you want to issue a refund directly to your customer?
In Oracle Receivables, this process involves first unapplying the original invoice from a receipt, and then performing actions on the receipt, or handling the receipt, to generate a refund or put funds on account to allocate at a later time.
You can automate this process. When importing a credit memo against a paid invoice, AutoInvoice can identify the receipt and decide, based on your setup, how to handle the funds.
For example:
If your enterprise processes a high volume of imported credit memos that require the creation of customer refunds, then you can set up your system to automatically refund the affected transactions.
If your enterprise does not customarily provide refunds to your customers, then you can set up your system to automatically place all credits on account.
To set up your system to automatically handle receipts and create refunds, or place credits on account, see: Setting Up the Automated Receipt Handling Process.
Attention: Receivables assumes that AutoInvoice imports only approved credit memos. Be sure to set up your feeder systems with business processes that support this assumption. See: RMA Processing.
Alternatively, you can manually generate the refund. See: Crediting Transactions and Creating Refunds.