Chapter 129: Generating Stored Value Card Refunds

Stored value card refunds allow you to generate a credit card credit against the original stored value card on the order or generate a new stored value card for the amount of the refund to send to the customer when you process the refund.

In this chapter:

• Stored Value Card Refunds: Credit Card Credit

• Stored Value Card Refunds: New Stored Value Card

• Changing the Type of Stored Value Card Refund Generated

• When is a New Stored Value Card Generated for a Refund?

• Consolidating New Stored Value Cards Generated for Refunds by Order

• Processing New Stored Value Cards Generated for Refunds

• General Ledger

For more information: See:

• overview and setup: Stored Value Card Overview and Setup

• activating the new stored value card for the refund amount: Stored Value Card Purchase and Activation

Stored Value Card Refunds: Credit Card Credit

If you process a return against a stored value card pay type that does not have an alternate pay type or alternate refund category defined, the system generates a credit card credit refund against the original stored value card pay type, allowing you to reimburse the refund amount to the original stored value card instead of sending a new stored value card to the customer.

Stored Value Card Refunds: New Stored Value Card

If you process a return against a stored value card pay type that has an alternate pay type or alternate refund category of stored value card defined, the system generates a new stored value card to send to the customer when you process a refund. The card is issued for the refund amount. When you process stored value card refunds, the system adds a stored value card item to the order at no charge. You can then follow the normal process of generating a pick slip for the stored value card item so that the card can be picked, activated, billed, and shipped to the customer.

You may wish to generate a stored value card refund if:

• Your company’s policy is to generate a stored value card refund in place of a merchandise credit.

• The sold to customer paid for the order using a stored value card, but has since thrown the card away. Instead of reimbursing the original stored value card on the order the refund amount, the customer has requested a new stored value card.

• The sold to customer paid for the order using multiple pay types. Instead of refunding each separate pay type on the order, the customer has requested the refund amount in the form of a stored value card.

Changing the Type of Stored Value Card Refund Generated

You can use Working with Refunds, Writeoffs and Balances Due (WREF) to change the type of refund that is generated for a stored value card pay type.

Credit card credit refund: If the original pay category and current pay category associated with the refund is a stored value card pay type (pay category Credit Card and Card type Stored Value), the system allows you to change the refund by entering a different refund type in the Type field on the Change Refund Screen. You can only change the refund type to a credit card credit refund (C) or stored value card refund (V). If you change the refund type to a credit card credit refund, the system adds the refund amount to the original stored value card on the order.

Stored value card refund: The system allows you to change any refund to a stored value card refund by entering a stored value card pay type in the Pay type field on the Change Refund Screen.

In addition, if the original pay category and current pay category associated with the refund is a stored value card pay type (pay category 2 (credit card) and Card type S), the system allows you to change the refund by entering a different refund type in the Type field. You can only change the refund type to a credit card credit refund (C) or stored value card refund (V). If you change the refund type to a stored value card refund, the system generates a new stored value card for the refund amount.

Merchandise credits, bonus credits, and sale credits: If you change a refund to a merchandise credit (refund type M), bonus credit (refund type B), or sale credit (refund type S), the system does not automatically change the refund to a stored value card refund, regardless of the setting of the Generate SVC Refund for all Merchandise Credit Refunds (I72) system control value.

When is a New Stored Value Card Generated for a Refund?

If the pay type associated with the refund is set up to generate a stored value card refund, the system generates a refund for refund type V (stored value card).

The system generates a stored value card refund when:

• The alternate refund type defined for a pay type is a stored value card.

• You process a return outside the Return Grace Period (B52) and the Alternate Pay Type (B51) is a stored value card pay type.

• You change a refund to a stored value card refund (refund type V) in Working with Refunds, Writeoffs and Balances Due (WREF).

In addition, if the Generate SVC Refund for all Merchandise Credit Refunds (I72) system control value is set to Y, the system generates a stored value card refund in place of a merchandise credit (or sale credit) in the following situations:

• The original pay type on the order was a coupon/credit pay category (category 5) and the alternate refund type defined for the pay type is blank or another coupon/credit pay category.

• The Generate Sale Credit for Orders with Sale Items (I64) system control value is set to Y, the returned item is a Sale item in the Item Offer or SKU Offer, and the pay type:

• is a coupon/credit pay category (category 5), or

• has an Alt refund type (Alternate refund type) that is a coupon/credit pay category, or

• has an Alt refund category (Alternate refund category) of coupon/credit

Note: If you process a return against a stored value card pay type that does not have an alternate pay type or alternate refund category defined, the system generates a credit card credit refund against the original stored value card pay type, allowing you to reimburse the original stored value card instead of sending the customer a new card. However if the customer no longer has the original stored value card, you can change the credit card credit refund to a stored value card refund by changing the Type field on the Change Refund Screen to V (stored value card refund); by doing this, the system sends a new stored value card to the customer for the refund amount.

Alternate currency and stored value card refunds: 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 change the refund to a refund type other than stored value card.

Consolidating New Stored Value Cards Generated for Refunds by Order

The system consolidates open stored value card refunds that are for the same pay type on the same order.

Example: The following activity occurs for an order. The pay type on the order has an alternate refund type of stored value card.

Activity	Results
You return order line 1 for 50.00	The system creates a stored value card refund for 50.00.
You return order line 2 for 25.00	The system updates the existing refund to 75.00.
You process stored value card refunds	The system generates a stored value card for a refund amount of 75.00.
You return order line 3 for 30.00	Since the first stored value card refund for the order has been processed, the system creates a new stored value card refund for 30.00.

Multiple pay types on the same order: If the system generates a stored value card refund for different pay types on the same order, the system will not consolidate the stored value card refunds.

Example: The following activity occurs for an order. The order contains 2 pay types: cash/check for 50.00 and A/R for 55.00. Both pay types have an alternate refund type of stored value card.

Activity	Results
You return order line 1 for 50.00	The system creates a stored value card refund for 50.00. The current pay category assigned to the refund is credit card; the original pay category assigned to the refund is cash/check.
You return order line 2 for 25.00	The system creates a stored value card refund for 25.00. The current pay category assigned to the refund is credit card; the original pay category assigned to the refund is A/R.
You process stored value card refunds	The system generates 2 stored value cards: 1 for a refund amount of 50.00 and the other for a refund amount of 25.00.

Note: In Working with Refunds, Writeoffs and Balances Due (WREF), if you change existing refunds for an order to stored value card refunds (by entering a stored value card pay type in the Pay type field at the Change Refund Screen), the system will not consolidate the stored value card refunds. For example, if 2 refunds exist for an order and you change both refunds to stored value card, the system will not consolidate the 2 refunds.

Processing New Stored Value Cards Generated for Refunds

To generate stored value card refunds, select a Bank, enter Y in the Generate SVC credits field and optionally, specify the Amount to generate at the Process Refunds Screen.

Note: If multiple stored value card refunds exist for an order and the first stored value card refund processed places the order on hold (due to credit checking), the system will not process the subsequent stored value card refunds since the order is now on hold.

When you process stored value card refunds, the system:

• Produces the Stored Value Card Credit Register; this report displays each order and sold to customer associated with a stored value card refund and the amount of the refund.

• 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. This item represents the new stored value card that is sent to the customer for the amount of the processed refund. The system adds this item to the order at no charge and defaults the price override reason code defined in the Price Override Reason for SVC Refund Item (I74) system control value to the order line.

Note:

• The system will 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.

• The price override reason code you select to default to the stored value card refund item must have the Override item offer price field set to N. Otherwise, the system will activate the new stored value card for the price defined in the SKU Offer or Item Offer file instead of activating the new stored value card for the refund amount.

• Automatically generates a pick slip for the new stored value card item added to the order if the Default Pick Generation Template for SVC Refund Processing (I75) system control value contains a pick slip generation template. If a pick slip generation template is not defined, you will need to advance to Work with Pick Slip Generation (WPSG) and select to generate a pick slip for the stored value card refund item.

Once a pick slip is generated for the stored value card item, the system goes through the regular process of assigning a number, activating, billing, and shipping the new stored value card to the sold to customer. See Activating a Stored Value Card.

Once the customer receives the stored value card containing the refund amount, the card can be used on future purchases.

General Ledger

Stored value card refunds in place of merchandise credits: If the Generate SVC Refund for all Merchandise Credit Refunds (I72) system control value is set to Y, the system generates a stored value card refund in place of a merchandise credit refund for a coupon pay type. In this situation, the system posts both the debit and credit transactions to the general ledger against the coupon/credit pay type on the order:

	Debit	Credit
G/L Account:	Returns G/L # for the coupon pay type	Pay Type G/L file
File:	Refund G/L # for the coupon pay type	Pay Type G/L file

However, if you change a merchandise credit refund for a coupon pay type to a stored value card refund (by entering a stored value card pay type in the Pay type field at the Change Refund Screen), the system posts the debit transaction to the original coupon pay type and the credit transaction to the stored value card pay type:

	Debit	Credit
G/L Account:	Returns G/L # for the coupon pay type	Pay Type G/L file
File:	Refund G/L # for the stored value card pay type	Pay Type G/L file

Because the general ledger postings for stored value card refunds varies based on how the stored value card refund was generated, you may wish to define the same Refund general ledger number for both your coupon pay type and stored value card pay type. This way, the system will post to the same refund general ledger number, regardless of how the stored value card refund was created.