AP: Supplier Refund Process

 

Supplier Refund Process
Steps
1.Create Prepayment Invoice:50,000	* Supplier Refund is workaround solution since there is no standard solution in fusion or EBS.
2.Process Payment: 50,000
3. Create Standard Invoice: 45,000	"*Use same account which was used to create the Dummy Invoice when you create a Debit Memo. The accounts are
1.Prepayment Adjustment Account
2. Supplier Refund Account"
4. Apply Prepayment on Standard Invoice: 45,000
5. Create Dummy Invoice: 5,000	*In our example we used "Refund" Account
6. Apply Prepayment on Dummy Invoice: 5,000
7. Create Debit Memo: -5,000
8. Process Payment to Debit Memo (DM) - Refund
1. Create Prepayment Invoice
Navigation: Payables >> Invoices >> Taskpane >> Create Invoice.
2. Process Payment
Click on Invoice Actions >> Pay in full
3. Create Standard Invoice: 45,000
4. Apply Prepayment on Standard Invoice:45,000
Navigation: Invoice Actions >> clickon Apply or Unapply Prepayments tab
* After applying the prepayment to the standard invoice we have to again validate the invoice
5. Create Dummy Invoice: 5,000
Path: Payables >> Invoices >> Taskpane >> Create Invoices
Note: 1. Here we have to provide Prepayment adjustment or supplier refund account at invoice line level.
2. The account which we used in this Dummy invoice the same account has to be used in Debit memo.
3. Here we have created the invoice with 13078 - Refund Account.
6. Apply Prepayment on Dummy Invoice: 5,000
* To Apply Prepayment on Standard Invoice goto Invoice Actions >> Clickon Apply or Unapply prepayments. Then select the line and clickon Apply.
* After applying the prepayment on standard invoice again we have to validate the standard invoice.
7. Create Debit Memo
* We have to create the Debit Memo with the same account with which we have created the Dummy Invoice.
* This is a Standalone Debit Memo which we are creating in the system.
*Give Refund Account here in Account Code Combinations
8. Process Payment to Debit Memo. Today we have received the amount from the supplier: 5,000. This we have to record in the system.
Path: Payables >> Payments >> Taskpane >> Create Payment
* Here select payment type as " Refund ".