Chapter 102: Processing Refunds (MREF)
Purpose: Use the Process Refunds function to:
• print refund checks
• generate merchandise, credit card, and accounts receivable credits
• process writeoffs
• process refund cancellations
• print credit card credit acknowledgements and generate email notices or the Outbound Email XML Message (CWEmailOut)
• generate stored value card credits
You can process any one refund type or a combination of refund types. You can also process all open refunds of a selected type, or you can specify a dollar limit to process for each. The function generates a register for each refund type and for writeoffs, including amounts, customer names, and order numbers. At this time, any refunds in N (cancel pending) status are canceled, but no report is produced.
Which orders and refunds are eligible for processing? To determine whether to process a refund for an order, or to cancel or writeoff the refund if appropriate, the system checks:
• order status: The Ord sts (Order status) must be open, closed (X), or canceled (C). The system does not generate a refund if the order is held (H), suspended (S) or archived (A).
• refund status: The Ref sts (Refund status) must be open (O), cancel pending (N), or writeoff pending (W). The refund status cannot be held (H), processed (P), canceled (C) or written off (T). If the refund has a separate status in parentheses (for example, O (H)), then the status in parentheses applies.
• manual hold: If the Manual hold flag for the refund is set to Y, the refund is not processed.
• bank: The order must have the same Bank as the one you specify at the Process Refunds Screen.
If there is more than one refund eligible for processing on a single order, all eligible refunds are processed.
Generating refunds for selected orders: You can use the Process Refunds by Order Screen to generate refunds for selected orders only. See Chapter 108: Processing Refunds by Order Number (MRFO).
Multiple currency by offer: If you use Multiple Currencies by Offer, each refund you generate is in the currency used on the order.
Alternate currency pricing: If you Use Alternate Currency Pricing (H89), each refund you generate is in the local currency except for the Refund Check and Credit Card Credit Acknowledgment (based on the print programs defined), which generate in the alternate currency if a conversion rate is defined in the Order Header Extended file. You can review the alternate currency used on the order on each refund report; see Refund Reports and Standard Programs.
Suppressing refunds: You can suppress refund processing:
• For orders you receive through the Generic Order Interface (Order API). In this situation, the refund is generated in N (cancel pending) status. See Suppressing Deposits and Refunds for an overview.
• For orders associated with a return you receive through the Generic Return API. In this situation, the refund is generated in N (cancel pending) status. See Suppressing Refunds for an overview.
In this chapter:
• Multiple Currencies by Offer
• Summary of Refund Processing Updates and Reports
• Refund Reports and Standard Programs
• A/R (Accounts Receivable) Credit Register
• Credit Card Credit Acknowledgment
• Reprint Refunds Screen (MREP)
Not in this chapter: This chapter does not explain how different types of refunds are generated or how you evaluate and change refunds before processing them. See Chapter 100: Printing and Interpreting Refund Due Lists (MRDU), and Chapter 101: Working with Refunds, Writeoffs and Balances Due (WREF).
A/R credits and refunds: You can also produce refund checks or credit card credits by flagging an open A/R credit open item if, for example, the accounts receivable customer requests a check instead of a credit against an A/R invoice. To generate such refund checks or credit card credits, you use Processing A/R Refunds (MARC). This menu option functions similarly to the Process Refunds menu option and also produces credit card credit notices and some of the same reports.
If you take orders in multiple currencies, then you need to process refunds in these currencies as well. When you process refunds, you must indicate the bank code; since each currency is associated with a unique bank, this tells the system the currency of the refunds to generate. You can process refunds for only one currency at a time. (To take orders in multiple currencies, you must have the Multi Currency by Offer (E03) system control value set to Y.)
The dollar limit for foreign currencies: You can specify a dollar limit for each refund type if you are generating refunds in a foreign currency. The system interprets the limit in your local currency, but generates refunds in the foreign currency. For example, your local currency is U.S. dollars, and you are generating refund checks to your Canadian customers. You specify a dollar limit of $1,000. The system uses the currency conversion rate in effect for each order at the time it was billed to calculate each refund amount in U.S. dollars. The first refund, for $50 in Canadian currency, was on an order billed at a currency conversion rate of 1.29. The system calculates the value of the refund in your local currency as $38.76 (50/1.29). This leaves a maximum of $961.24, converted into your local currency, left to generate.
The system continues to process refunds in chronological order by refund date, stopping before it exceeds the dollar limit you defined in your local currency. The refund checks, however, are always in the currency used on the order.
You can enter up to three message lines to print on a refund check if your refund check print program supports them. You specify the print program in the Refund Check Print Program (D23) field in the System Control file. The base print program is CSR0836.
To enter messages, you use the Work with Order Messages Screen, available by pressing F23 in order entry, order maintenance, or order inquiry.
Purpose: Use this screen to process:
• refund checks
• merchandise credits
• credit card credits
• A/R credits
• stored value card credits
• writeoffs
How to display this screen: Enter MREF in the Fast path field or select Process Refunds from a menu.
CSR0375 ENTER Process Refunds 5/27/04 15:45:16 KAB Co.
Generate refund checks . . . . N (Y/N) Amount to generate . (blank = no limit) Select Bank . . . . . . . . (Required)
Generate merchandise credits . N (Y/N) Amount to generate . (blank = no limit)
Generate C/C credits . . . . . N (Y/N) Amount to generate . (blank = no limit)
Generate A/R credits . . . . . N (Y/N) Amount to generate . (blank = no limit)
Generate SVC credits . . . . . N (Y/N) Amount to generate . (blank = no limit)
Process write-offs . . . . . . N (Y/N) Prior to date . . . . . . (blank = no limit)
F3=Exit F12=Cancel |
Field |
Description |
This value determines whether to generate refund checks; see Refund Check for a sample. Valid values are: Y = Generate checks. N (default) = Do not generate checks. The system produces the Refund Check Register. The system also prints checks for refunds that are eligible for processing and have a check refund type. Refund checks are written to the Check Reconciliation file. If the Create Bank Interface Record (G12) system control value is set to Y, the system creates a bank reconciliation transaction for each refund check to send refund check information to the bank for automated reconciliation. You can review and work with the bank reconciliation transactions in Working with Bank Reconciliation Transactions (WBRC). Alphanumeric, 1 position; required. |
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Amount to generate (Refund check amount to generate) |
The maximum total dollar amount that you want to disburse in refund checks. The system prints checks for all eligible refunds in ascending chronological order based on refund date, and stops before exceeding this amount. If you are processing refunds in a foreign currency, the system evaluates the amount to generate in your local currency by converting the refund amount, using the conversion rate in effect when you billed the order. The refund check, however, is in the foreign currency. If you leave this field blank, the system processes all eligible refund checks. Numeric, 10 positions; optional. |
The bank associated with the source code on the order. You associate a bank with a source code by selecting a division for the source code; each division is associated with a bank. The system determines the next sequential check number to use by adding 1 to the Last check number defined in the Bank file. If you process orders in multiple currencies or use alternate currency pricing, the bank also indicates the currency of the refunds, since each currency on your system is associated with a unique bank. The bank you specify at this screen indicates the currency of all refund checks, credits, or writeoffs that you process at this screen. Bank codes are defined in and validated against the Bank file. See Accounts Payable Chapter 6: Working with Banks (WBNK). Alphanumeric, 3 positions; required. |
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This value determines whether to generate merchandise, sale, and bonus credits. See Merchandise Credit, Bonus Credit, and Sale Credit. Valid values are: Y = Generate merchandise credits. N (default) = Do not generate merchandise credits. The system also produces the Coupon/Credit Register. Merchandise, bonus, and sale credits are written to the Coupon Redemption file. When the credits are used as payment on an order, the system updates the Coupon Redemption file to indicate that the credit has been redeemed. Alphanumeric, 1 position; required. |
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Merchandise credit amount to generate |
The maximum total dollar amount that you want to disburse in merchandise credits. The system issues credits for all eligible refunds in ascending chronological order based on refund date, and stops before exceeding this amount. If you are processing refunds in a foreign currency, the system evaluates the amount to generate in your local currency by converting the refund amount, using the conversion rate in effect when you billed the order. The credit, however, is in the foreign currency. If you leave this field blank, the system processes all eligible merchandise credits. Numeric, 10 positions; optional. |
This value determines whether to generate refunds in the form of credit card credits. Valid values are: Y = Generate credit card credits. N (default) = Do not generate credit card credits. Change the value in this field to Y to process credit card credits. The system writes records to the Auto Deposit file and produces a Credit Card Credit Register that identifies the amount, customer name, and order number of each credit processed. The system also produces either a Credit Card Credit Acknowledgment (if the Print Credit Card Credit Acknowledgments (C35) system control value is set to Y) or an email notification (regardless of the setting of the Print Credit Card Credit Acknowledgments (C35) value) or the Outbound Email XML Message (CWEmailOut) for each credit as appropriate; see When Does the System Generate an Email Notification? Email template: You can use the Working with Entities (WENT) menu option to create an entity-level email template, and the Working with E-Mail Notification Templates (WEMT) menu option to create a default company-level credit card credit template. The template specifies the text to print above and below the standard credit card credit information. The template also specifies whether to generate an actual email or the Outbound Email XML Message (CWEmailOut). |
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Additional email and XML setup requirements: The Credit Card Credit Acknowledgement E-Mail Program (H08) system control value must be set to a valid program to generate a credit card credit acknowledgement email. To generate the Outbound Email XML Message (CWEmailOut), confirm that the Credit Card Credit Acknowledgement E-Mail Program (H08) system control value is not blank and that the EMAIL_OUT process in Working with Integration Layer Processes (IJCT) has an outbound XML version greater than 1.0. See Outbound Email API for an overview. Deferred or installment billing: The system does not process a credit card credit against an installment or deferred billing order before the deposit has been processed. This ensures that you do not credit the customer's credit card before the card has been charged. Note: Sales Journal and deposit summary records may differ depending on how often you process credit card credits. Alphanumeric, 1 position; required. |
Amount to generate (Credit card credit amount to generate) |
The maximum total dollar amount that you want to process in credit card credits. The system issues credits for all eligible refunds in ascending chronological order based on refund date, and stops before exceeding this amount. If you are processing refunds in a foreign currency, the system evaluates the amount to generate in your local currency by converting the refund amount, using the conversion rate in effect when you billed the order. The credit, however, is in the foreign currency. If you leave this field blank, the system processes all eligible credit card credits. Numeric, 10 positions; optional. |
This value determines whether to create credit open items for accounts receivable customers. Valid values are: Y = Credit accounts receivable. N (default) = Do not credit accounts receivable. Change the value in this field to Y and press Enter to process A/R credits. The system produces a A/R (Accounts Receivable) Credit Register that identifies the order, A/R account number, customer, and amount of each A/R credit. The system also updates the Customer Bill To file. If the Process A/R Credits Immediately (E80) system control value is set to Y, you do not need to use the Process Refunds menu option to create A/R credit open items. See Chapter 73: Applying a Credit Balance. Alphanumeric, 1 position; required. |
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Accounts receivable credit amount to generate |
The maximum total dollar amount that you want to pay in accounts receivable credits. The system issues credits for all eligible refunds in ascending chronological order based on refund date, and stops before exceeding this amount. If you are processing refunds in a foreign currency, the system evaluates the amount to generate in your local currency by converting the refund amount, using the conversion rate in effect when you billed the order. The credit, however, is in the foreign currency. If you leave this field blank, the system processes all eligible accounts receivable credits. Numeric, 10 positions; optional. |
This value determines whether to generate stored value card credits. Valid values are: Y = Generate stored value card credits. N (default) = Do not generate stored value card credits. When you generate stored value card credits, the system issues a new stored value card to the sold to customer for the refund amount. The system: • Produces the Stored Value Card Credit Register. • Writes an order transaction history message: F Stored Value Card refund created. • Writes an order line message: SVCRefund created for $99.99. The Print flag for the order line message is P so that the message prints on the pick slip generated for the stored value card refund item. • Adds the stored value card item defined in the Default SVC Refund Item Number (I73) system control value to the order at no charge using the price override reason code defined in the Price Override Reason for SVC Refund Item (I74) system control value. Note: The system does not generate a stored value card refund unless the stored value card refund item has available inventory. If the item does not have available inventory, the stored value card refund remains unprocessed. • Generates a pick slip for the stored value card item if the Default Pick Generation Template for SVC Refund Processing (I75) system control value contains a pick slip generation template. You can then follow the normal process of activating, billing, and shipping the stored value card to the customer. See Generating Stored Value Card Refunds for an overview. |
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Note: While the system allows you to generate a stored value card refund for an order associated with an alternate currency, the system can process stored value cards in the US currency only. If the order is for a currency other than US, you should generate a refund type other than stored value card for the order. The system displays an error message at the Process Refunds Screen if you select to generate stored value card credits and the Default SVC Refund Item Number (I73) and/or Price Override Reason for SVC Refund Item (I74) system control values are blank: Sys Con Values I73 & I74 must be populated first. Alphanumeric, 1 position; required. |
Amount to generate (Stored value card credit amount to generate) |
The maximum total dollar amount that you want to process in stored value card refunds. The system issues credits for all eligible refunds in ascending chronological order based on refund date, and stops before exceeding this amount. Note: Stored value cards are only allowed in US currency. If you leave this field blank, the system processes all eligible stored value card credits. Numeric, 10 positions; optional. |
This value determines whether the system processes refunds to be written off. Valid values are: Y = Process writeoffs. N (default) = Do not process writeoffs. The system produces the Refund Writeoff Register. The system updates the general ledger number associated with writeoffs for each pay type, and updates the writeoff amount for the customer. You can apply positive writeoff balances as credits and negative writeoff balances as charges against a new order placed by the customer. Alphanumeric, 1 position; required. |
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Prior to date |
Enter a date to specify that only writeoffs with a Refund created date earlier than the date you enter will be processed. If you leave this field blank, the system processes all refunds to be written off. |
Step-by-step instructions:
1. Change the Generate refund field to Y for each type of refund you want to process.
2. Enter maximum amounts for each type of refund, if needed.
3. Specify the bank code associated with the refunds you wish to generate.
4. If you are processing refund checks, a pop-up window appears displaying the next available check number. You can accept the check number displayed, change the check number, or press F12 to close the window and cancel the action.
5. If you are generating unlimited credit card credits, a pop-up window opens confirming that you are not restricting these credits to a specific dollar amount. Again, you can accept or press F12 to close the window and cancel the action.
6. The system submits the batch job REF_PROC, which processes the refunds up to the specified dollar limits and displays a message identifying the job name and job queue.
Note: An error message indicates if you selected to generate stored value card credits and the Default SVC Refund Item Number (I73) and/or Price Override Reason for SVC Refund Item (I74) system control values are blank: Sys Con Values I73 & I74 must be populated first; see Generating Stored Value Card Refunds.
Summary of Refund Processing Updates and Reports
Update refunds: The status of each refund is updated, as well as the Trn dt (Refund transaction date).
Update order history: The system writes a message to the Order History file for each order being refunded such as the following:
• refund check: 7/20/00 F Refund check# 212 created 49.50 EKAPLAN
• writeoff: 7/20/00 F Refund type K has been cancelled 17.48- EKAPLAN
• coupon/credit: 7/20/00 F Refund credit# 101314 created (type M) 57.50 EKAPLAN
• credit card credit: 2/20/09 F CC Crd for inv# 3918 processed 52.50 EKAPLAN. If the credit card credit generates an email notification or outbound XML message, the system also writes a message such as: 2/20/09 L C/C Ack to ekaplan@example.com. EKAPLAN
• A/R credit: 7/20/00 F A/R credit for invoice# 3920 refunded 52.50 EKAPLAN
• stored value card credit: 5/27/04 F Stored Value Card refund created 12.99 KBOTTGER
You can review Order History at the Display Order History Screen, available in order inquiry.
Checks, registers, and acknowledgements: Depending on your selections, this job produces the:
• A/R (Accounts Receivable) Credit Register
• Credit Card Credit Acknowledgment (Note: The acknowledgment can also be sent by email or the Outbound Email XML Message (CWEmailOut); see When Does the System Generate an Email Notification?)
• Stored Value Card Credit Register
The system does not generate a register of canceled refunds.
For more information: See Refund Reports and Standard Programs.
Refund Reports and Standard Programs
Purpose: The reports and print programs related to refunds, the standard program values, and the system control values you use to define them, are:
Report |
Standard Program |
System Control Value Name (Value) |
Checks |
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CSR0834 |
Refund Check Print Program (D23) (program name) Refund Check Bonus % (B69) (percentage) |
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CSR0385 |
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Writeoffs |
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CSR0390 |
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Coupons/Credits |
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CSR0567 |
Reg. merch. credit pgm. VNM (program name) |
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CSR0577 |
Bonus Credit Print Program (D30) (program name) Bonus Credit Bonus % (B70) (percentage) |
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CSR0579 |
Sale Credit Print Program (D31) (program name) |
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CSR0393 |
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Accounts Receivable (A/R) |
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CSR0398 |
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Credit Cards |
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CSR0559 |
Credit Card Credit Acknowledgment Print Program (D22) (program name) |
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Credit Card Credit Acknowledgement Email or Outbound Email XML Message (CWEmailOut) |
ECR0258 |
Credit Card Credit Acknowledgement E-Mail Program (H08) (program name) Note: The Print Credit Card Credit Acknowledgments (C35) system control value does not control email acknowledgments. |
CSR0397 |
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Stored Value Card Register |
CSR1405 |
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Use Working with Report Controls (WRPT) to define the program for each report, and such printing specifications as:
• output queue (for printing)
• number of copies to generate
• whether to hold the report
• whether to save the report after printing it
• the description of the report
• the type of form the report prints on
Purpose: Use this screen when you encounter a problem printing refund checks or credits and you need to reprint them.
Note: Because the reprint program uses information from the Check Reconciliation file, the reprint process picks up only unreconciled, unvoided checks or merchandise credits within the check range you specify. See Chapter 103: Reconciling Checks (MREC).
How to display this screen: Enter MREP in the Fast path field at the top of any menu or select this option from a menu.
CSR0387 ENTER Reprint Refunds 9/03/98 15:25:54 The KL Mail Order Company
From To New#
Check# . . - N (Y/N)
Coupon# . . - N (Y/N)
Bank # . .
F3=Exit F12=Cancel |
Field |
Description |
Check # (Check number) |
The check numbers of the first and last checks to reprint. From The check number of the first check to reprint. Numeric, 7 positions; optional. To The check number of the last check to reprint. Numeric, 7 positions; optional. New # This value indicates whether to assign new check numbers to the reprinted checks/credits or use the same check numbers again. If you assign a new check number to the reprinted checks and the Create Bank Interface Record (G12) system control value is set to Y, the system creates a bank reconciliation transaction in the Bank Reconciliation Transaction file. If a bank reconciliation transaction already exists for the check number you are reprinting, the system replaces the existing transaction if the type is O (outbound) and the status is O (open). See Chapter 107: Working with Bank Reconciliation Transactions (WBRC). |
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Valid values are: Y = Assign new check numbers. N (default) = Use the same check numbers again. The system does not reprint voided check numbers. Alphanumeric, 1 position; required. |
Coupon # |
The numbers of the first and last coupons to reprint. From The number of the first coupon to reprint. Numeric, 7 positions; optional. To The number of the last coupon to reprint. Numeric, 7 positions; optional. New # This value indicates whether to assign new coupon numbers or use the same coupon numbers again. Valid values are: Y = Assign new coupon numbers. N (default) = Use the same coupon numbers again. Alphanumeric, 1 position; required. |
New # (New check number) |
This field indicates whether to assign a new check number to the reprinted check, or a new coupon number for the reprinted coupon. Valid values are: Y = Assign a new check/coupon number N (default) = Use the same check/coupon number for the reprint. Alphanumeric, 1 position; required. |
Bank # (Bank) |
The bank associated with the source code used on the orders. Bank codes are defined in and validated against the Bank file. See Accounts Payable Chapter 6: Working with Banks (WBNK). Alphanumeric, 3 positions; required. |
Completing this screen: If you select checks, a pop-up window appears displaying the next available check number. You can accept the check number, change the number, or press F12 to close the window and cancel the action. The system submits a batch job called REF_RPRT. This program reprints all the refunds you have specified. See Refund Reports and Standard Programs.
The system also writes a message to the Order History file that identifies the original check number, a reprint message, and the new check number, if applicable. You can view Order History through Order Inquiry; see Chapter 52: Using the Order Inquiry Scan Screens (OIOM).
| Chapter 101: Working with Refunds, Writeoffs and Balances Due (WREF) | Contents | SCVs | Search | Glossary | Reports | XML | Index | Refund Check |
CS10_04 CWDirect 18.0 August 2015 OTN