Understanding Refunds

You can use three refunding methods to create and distribute refunds:

• Payroll

  The payroll method involves creating and distributing refunds using PeopleSoft Payroll for North America that treats your students like employees. The payroll method can only create and distribute student refunds, not organization refunds.

• Accounts payable

  The accounts payable method involves creating and distributing refunds through an interface with PeopleSoft Payables.

• Other

  The other method is a catchall method used by institutions that create and distribute refunds through an interface with an application other than Payroll for North America or Payables.

You can use two types of processes to create and distribute refunds:

• Online

  Processing a refund online involves creating and distributing a refund for one recipient in real time.

• Batch

  Processing refunds in batch involves creating and distributing refunds for one or more recipients on a scheduled basis using a batch process.

Two types of recipients can receive refunds: students and organizations. In Student Financials, the recipient refers to the type of account being refunded and does not necessarily indicate the person or organization that actually receives the refund. For example, a student withdraws from a class and is due to receive a refund. However, a nonstudent sponsor originally paid the student's tuition fees and should therefore receive the refunded money. Although the sponsor receives the actual refund, it is still considered a student refund in terms of how you create and distribute it.

You can use several types of formats to distribute refunds:

• Check

  Using the check format, you refund customers by sending them a check for the refund amount.

• Credit card

  Using the credit card format, you directly refund a customer's credit card for the refund amount.

• Electronic check

  Using the electronic check format, you directly refund a customer's eCheck account for the refund amount.

• Direct deposit

  Using the direct deposit format, you automatically deposit the refund amount into a predetermined direct deposit account. The direct deposit format is available for the accounts payable and payroll refunding methods.

The following diagrams display the decisions and processes involved with creating and distributing payroll and AP refunds.

Payroll Refund Processing

The following diagram outlines payroll refund processing:

Image: Payroll refund process flow

payroll refund process flow

AP Refund Processing

The following diagram outlines AP refund processing:

Image: AP refund process flow

AP refund process flow