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Refund Process in Oracle Payables R12
Refund Process in Oracle Payables R12
Refund Process in Oracle Payables R12
Refund is the amount, which we have already paid to our supplier against his services or Purchase Goods and
now we have taking back this Payment or some part of the payment from this supplier due to the Excess
Payment Issued by us or We got the Damage product received from the Supplier or we are not satisfied with
his services. We can take refunds in Oracle Payables through Creating Payment with the Payment Type
‘Refund’
2nd Method
Suppose, you have given Prepayment to your Supplier for $400 and you have created an Invoice of Type
‘Prepayment’ for $400 but when your supplier sent the Actual Invoice then it was only $350 Invoice.
It means, you have given the $50 more to your Supplier as per his Invoice Amount so now you want to Take
Refund for this.
For this kind of scenario, you must follow these options.
1. Create one Standard Invoice for $50 for this Supplier and Then Apply the Prepayment Remaining amount
$50 to this Invoice. This Way your prepayment will be adjusted in to the System.
2. Now in the Second Step, we will take back Refund for $50 from the Supplier. To get the Refund from the
Supplier, first We Will Create a Credit Memo for amount of $50 and then Create a Payment with Type Refund
to receive the Amount from the supplier and then Match this Refund payment with the Credit Memo of $50.
This will also debit the Bank account for $50.