Accounting for Refund From Supplier

8/13/2019 Accounting for Refund From Supplier

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Accounting for Refund from Supplier

Internal Document of 5

Contents

1.0 – Process Flow in Accounting for Refund from Suppliers ................................... 3 2.0 - Credit Memo ............................................................ ................................................ 4 3.0 - Payment with Refund type ............................................................................. ....... 5





1.0 – Process Flow in Accounting for Refund from Suppliers

When there is a refund of money from supplier the same can be accounted in the Payables Module byfollowing the below process.

Invoice Workbench - Create Credit memo

against the supplier making Refund

Payment Workbench – Pay the Creditmemo with type “Refund”

Validation

Yes

No

Check for Holds

Start of Process

End of Process





2.0 - Credit Memo

Navigation: Invoices > Entry > Invoices

Steps

1. The Operating Unit defaults2. Select the Type as Credit Memo3. Select the Training Partner (Supplier) who has Refunds money4. The Supplier Number and Supplier Site automatically defaults5. Select the Invoice Date6. Enter the Invoice Number(This can be a internal number or Cheque/DD

number since there is no specific invoice from the supplier )7. Enter the Invoice amount in negative (Oracle validates and allows only

negative amount for Credit memo)8. The GL Date, Terms Date, Payment Terms and Pay Group defaults from

supplier master9. Select the Payment Method (if it does not defult from supplier master)10. Click the Lines Tab11. Enter the amount (negative). Any number of Debit lines can be entered but the

total should not vary with that entered at the invoice header level12. Click the Distributions Button13. Enter the amount (negative) and the Account as required14.Click ‘Actions’ Button, check Validate Check box and click the OK Button 15. In the General Tab of the invoice workbench, notice that the Status will change

from ‘Never Validated’ to ‘Validated’





3.0 - Payment with Refund type

Navigation: Payments > Entry > Payments

Steps

1. Select the Type as ‘Refund’ 2. The Operating Unit defaults3. Select the Trading Partner (Supplier whom refund the money)4. The Supplier Number defaults. Select the Supplier Site (if multiple supplier site

exist)5. Select the Payment Date, Payment Method, Document Number and6. Select the Bank Account – This account will be the account to which the refund

chequr/DD is deposited.

7. Document Number will be a mandatory column but will not be autofilled by runnigsequence. This number can be the cheque number/DD number of the refund.

8. Clickthe ‘Enter/Adjust Invoices’ Button 9. In the Select Invoices screen, select the outstanding invoice to be paid and click

the OK Button10. Save the changes and close the window11. In the Payment screen, view the details like Invoice Number, Invoice Amount and

Payment Amount12. Click the payment overview button and view the payment details

Accounting for Refund From Supplier

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