If you set up your system to automatically manage receipts when importing credits, then the automated receipt handling process occurs as follows:

1. AutoInvoice reviews the transaction batch source for each submission, to determine if automated receipt handling is enabled.

   See: Setting Up Automated Receipt Handling for Credits.

2. If enabled, then AutoInvoice evaluates each credit memo and its associated invoice to determine eligibility for automatic receipt handling.

   To be eligible, the paid invoice's transaction type must be set to allow natural application only.

   Additionally, the transaction must not be in doubt. See: Transactions in Doubt.

3. If eligible, then AutoInvoice unapplies the paid invoice (original transaction) from the receipt to be credited.

4. AutoInvoice automatically creates the credit memo in the amount of the requested credit, and applies the credit to the correct invoice.

5. If your policy is to automatically refund your customers, then AutoInvoice evaluates the receipt for refund eligibility.

   To be eligible, the receipt must not be in doubt. See: Receipts in Doubt.

6. Finally, AutoInvoice applies the appropriate receivable activity to the receipt, as determined by your batch source setup.