AutoInvoice can evaluate credit memos that it imports into your system and handle receipts according to your setup, to create customer refunds or on-account credits. See: Setting Up the Automated Receipt Handling Process.

However, AutoInvoice will not create a refund if doubt exists as to whether a refund is appropriate.

Doubt can exist in relation to either:

• The original transaction, against which the credit memo is imported.

• The receipt that paid the original transaction.

Transactions in Doubt

For each submission, AutoInvoice reviews the automatic receipt handling setting on the transaction batch source. If the setting is enabled, then AutoInvoice evaluates the credit memo and its associated invoice.

AutoInvoice will reject a credit memo from automated receipt handling if one of the following conditions exists on the transaction to be credited:

• The original invoice's transaction type is set to allow overapplication.

• An on-account credit memo was already applied against the invoice.

• An adjustment already exists against the invoice:

  • Regular adjustment

  • Chargeback adjustment

  • Bills receivable assignment

• The credit memo is imported against an invoice with a negative creation sign.

If the credit memo is ineligible due to one of the conditions above, then AutoInvoice processes the credit memo using standard validation.

AutoInvoice takes this precaution so that you can evaluate the appropriateness of the credit request before taking action on it.

Receipts in Doubt

AutoInvoice might automatically place on account the amount of a refund request, if:

• The receipt to be refunded has not yet been remitted.

• Multiple payment types (ACH, cash, credit card) exist on the same transaction to be credited.

• Installments exist and are not fully paid.

• The following items exist against the receipt:

  • Unresolved claims

  • Receipt chargebacks (noninvoice-related)

  • On-account credit memos

• The amount of the refund request is less than the minimum refund amount specified in your system options.

  See: Miscellaneous System Options.