Refund Process in Oracle Payables R12 : Supplier refund in oracle payables

Refund Process in Oracle Payables R12 : Supplier refund in oracle payables

 

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’

 

We can take Refund in Oracle by Two Ways.

1^st Method

1.       Suppose, we have got the Standard Invoice from the Supplier for amount $100.

2.       In this Invoice, we found we have Supplier has charged $20 dollars more in this Invoice and in Actual, total Liability we have for this Supplier is $80.

3.       So, in This case, We will create the Credit Memo for the amount of $20 against this Invoice. Credit Memo is Always in the Negative Amount. This Will help to reduce Our Liability for this Supplier to $80.

                     

              Total Standard Invoice Amount: $100

              Credit Invoice Amount: -$20

              Total Outstanding: $80

Then After Creating the Credit Memo, We will do the Payment for this Supplier for amount 80$ and in this Payment , we will select both of these Two Invoices (Standard Invoice $100 & Credit Memo Invoice -$20) and the actual payment will be $80

 

2^nd 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.