Processing A/R Refunds (MARC)

Purpose: Use the Process A/R Refunds menu option to process A/R credit open items that have been flagged to produce refund checks or credit card credits.

Overview: You have the option of generating refund checks or credit card credits for A/R credit open items rather than applying the credits to A/R invoice open items. For example, if the Process A/R Credits Immediately (E80) system control value is set to Y, the system would automatically produce an A/R credit open item when a customer cancels a prepaid order if the pay type has an A/R alternate refund type. In this situation, you could flag the credit to produce a refund check if the customer requests it. You would then use the Process A/R Refunds menu option to produce such refund checks.

The Process A/R Refunds menu option is similar to Processing Refunds (MREF) and produces some of the same reports.

How do you to flag credits: The ways to flag A/R credit open items for refund checks or credit card credits are:

• Order maintenance prompt: When you are Returning and Exchanging Items in order maintenance by pressing F17, if there is not currently an unpaid invoice open item against the order, a pop-up window prompts you for the disposition of the credit. You can select to create a refund check or credit card credit, either for the entire credit amount or for the unused balance after applying the amount to an invoice open item.

• Work with A/R Open Items: At this screen, you have the option of flagging existing A/R credit open items as refund checks or credit card credits. This screen is available as a menu option (Work with A/R Open Items (WARI)) or by pressing F10 in order entry or order maintenance.

• Allocating A/R credits as payments: If the Allow A/R Credits as Payments (E81) system control value is set to Y, you have the option of selecting A/R credit open items to allocate as payment against an accounts receivable order. When you select credits for allocation, you can specify to produce a refund check with any unapplied balance.

You cannot flag an A/R credit open item as a credit card credit unless the customer used a credit card on the original order.

How do you review A/R credits before processing? You cannot distinguish the status or disposition of any A/R credit open item through the Work with Refunds menu option. In order to create an A/R credit open item, the refund record must already be processed. This means that these records will appear in the Work with Refunds menu option in a processed (P) status, and a type of accounts receivable (A), regardless of whether the A/R credit is flagged for a check or credit card credit, has been applied to an invoice open item, etc.

To review A/R credits eligible to create refund checks and credit card credits, you must review the accounts of individual customers (for example, through A/R inquiry).

Additional system control values:

• Default Credit Open Item Type (C12)

• Default Credit Card Credit Open Item Type (E83)

A/R credit open item types are defined in and validated against the A/R type file. See Accounts Receivable Establishing Accounts Receivable Types (WART).

Refund checks and check reconciliation: When you select to generate refund checks, the system creates a record in the Check Reconciliation file for each check. However, if the refund check originated from an A/R open item that you flagged to produce a refund check, and the open item represented an on-account payment, then the system does not create a record in the Refund Reconciliation file.

The system consolidates any refund checks for the same bill-to customer; in this situation, the order number on the check appears as 0 - 0. You cannot void and reinstate or void and writeoff such refund checks through the Reconciling Checks (MREC) menu option.

For more information:

• Selecting the disposition of a credit balance: Applying a Credit Balance

• Overview of the refund process: Introducing the Refund Process

• Allocating A/R credits as payments: Select A/R Credit Open Item Pop-Up Window (Using A/R Credits as Payments)

• Sample refund check, refund check register, and credit card credit register: Processing Refunds (MREF)

Refund A/R Open Item Credits Screen

How to display this screen: Enter MARC in the Fast path field at the top of any menu or select Process A/R Refunds from a menu.

ACR0379 ENTER Refund A/R Open Item Credits 9/02/97 16:06:43 EZK Mail Order Generate refund checks . . . . N (Y/N) Amount to generate . (blank = no limit) Select Bank . . . . . . . . (Required) Generate C/C credits . . . . . N (Y/N) Amount to generate . (blank = no limit) F3=Exit F12=Cancel

Field	Description
Generate refund checks	This value determines whether to generate refund checks for A/R credit open items flagged to produce them. Valid values are: Y = Generate checks. N (default) = Do not generate checks. The system produces a check register and prints checks for refunds that are eligible for processing because of A/R credit open items flagged to produce refund checks. See Processing Refunds (MREF) for samples. Refund checks are written to the Check Reconciliation file. However, if the refund check originated from an A/R open item that you flagged to produce a refund check, and the open item represented an on-account payment, then the system does not create a record in the Refund Reconciliation file. Note: The system consolidates any refund checks for the same bill-to customer; in this situation, the order number on the check appears as 0 - 0. You cannot void and reinstate or void and writeoff such refund checks through the Reconciling Checks (MREC) menu option. Alphanumeric, 1 position; required.
Amount to generate (Refund check amount to generate)	The maximum total dollar amount that you want to disburse in refund checks. The system prints refund checks for all eligible A/R credit open items in ascending chronological order based on refund date, and stops before exceeding this amount. If you leave this field blank, the system processes all eligible refund checks from A/R credits. Numeric, 10 positions; optional.
Bank	The bank to produce the refund checks. Bank codes are defined in and validated against the Bank file. Alphanumeric, 3 positions; required.
Generate credit card credits	Determines whether the system generates credit card credits from A/R credits flagged to produce credit card credits. You can flag a credit to produce a credit card credit only if a credit card (with an accounts receivable alternate refund type) was used on the original order. Valid values are: Y = Generate credit card credits. N (default) = Do not generate credit card credits. Change the value in this field to Y and press Enter 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). 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 A/R credits in ascending chronological order based on refund date, and stops before exceeding this amount. If you leave this field blank, the system processes all eligible credit card credits. Numeric, 10 positions; optional.

Instructions: Complete each required field and any optional fields. You must complete the Select bank field and set at least one of the Generate refund checks or Generate credit card credits flags to Y. The system generates the job REF_AR. This job produces the Refund Check Register, Refund Check, 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?), and the Credit Card Credit Register.