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Refund Process in Oracle Payables R12

The document describes two methods for processing supplier refunds in Oracle Payables R12. The first method involves creating a credit memo for an overpayment amount and selecting both the original invoice and credit memo when making a payment for the outstanding amount. The second method deals with receiving a refund when a prepayment amount exceeded the actual invoice amount. This involves creating a standard invoice to use up the remaining prepayment balance and then a credit memo and refund payment to receive the excess prepayment amount back from the supplier.

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Shaik Mahamood
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649 views2 pages

Refund Process in Oracle Payables R12

The document describes two methods for processing supplier refunds in Oracle Payables R12. The first method involves creating a credit memo for an overpayment amount and selecting both the original invoice and credit memo when making a payment for the outstanding amount. The second method deals with receiving a refund when a prepayment amount exceeded the actual invoice amount. This involves creating a standard invoice to use up the remaining prepayment balance and then a credit memo and refund payment to receive the excess prepayment amount back from the supplier.

Uploaded by

Shaik Mahamood
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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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.


1st 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

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.

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