This section describes how to set up Oracle Receivables so that AutoInvoice can automatically generate customer credits according to the refund policies at your enterprise.

For example, you can tell AutoInvoice to automatically create a refund in preparation for remittance to your customer.

Under certain circumstances, AutoInvoice will not consider a credit memo for automated receipt handling, or will place the funds on account instead of creating a refund. See: Exception Conditions for the Automated Receipt Handling Process.

To set up AutoInvoice to evaluate receipts for automatic handling:

1. Set your receipt handling policy in the Transaction Sources window.

   See: Transaction Batch Sources.

2. If creating refunds, specify the minimum amount that AutoInvoice will create refunds for.

   See: Miscellaneous System Options.

3. To process credit card refunds, use a receipt class with a remittance method of Standard on your original credit card transactions.

   See: Setting Up Receivables for Credit Card Transactions and Payments.

4. To process non-credit card refunds, define a receivable activity using the Refund type.

   See: Receivables Activities

5. For transactions for which you want to automate receipt handling for credits, be sure that the transaction type allows natural application only.

   Attention: If the transaction type is set to Allow Overapplication, then AutoInvoice will not begin the automated receipt handling process. Instead, you will need to manually manage the receipt.

   See: Exception Conditions for the Automatic Receipt Handling Process.