Process A/R Credits Immediately (E80)

Purpose: Use this screen to define whether the system should process accounts receivable refunds automatically “behind the scenes.”

Yes/no field: Select this field to have the system process refunds for an accounts receivable pay type or alternate refund type automatically. The system creates a refund in a processed (P) status, and a credit open item against the bill-to account associated with the customer who placed the order.

In certain situations the system prompts you on how to apply the credit open item when you process a return or exchange. The Apply Credit Balance pop-up window displays, presenting options such as selecting an unpaid invoice to credit, allocating the credit to unshipped lines on the current order, or flagging the credit to produce a refund check or a credit card credit.

In other situations, the system automatically creates an open credit A/R open item. You can use different menu options, including cash receipts and Work with A/R Items, to apply the credit to existing A/R invoice open items or select another disposition.

Scenario	Window Displays?	Disposition of Credit	Example
You enter a return or exchange by selecting Return for an item, or return the entire order by selecting Return, and there is currently at least one A/R invoice open item in an open status for the order	No	Allocated and applied automatically against the open A/R invoices for the order	An accounts receivable pay type was used on the order, and at least some of the items have been picked and billed; the invoice open item is in dispute (status of D)
You enter a return or exchange by selecting Return for an item, or return the entire order by selecting Return, and there are currently no A/R invoice open items in an open status for the order	Yes	You select disposition	An accounts receivable pay type was used on the order and A/R invoice open items for the order were previously paid; or, The customer used a credit card pay type whose alternative refund type is an accounts receivable pay type
You enter a return by adding a line with a negative quantity	No	Automatically created in an open status	Any pay type creating an accounts receivable refund is used on the order
Overpayment	No	Automatically created in an open status (however, if the Method for Processing Overpayments in Order Entry (D70) system control value is set to AUTO/CONTR, or if it is set to OE PROMPT and you select to create a contribution at the prompt, a contribution is created instead)	A prepaid pay type with an accounts receivable alternate refund type was used on the order
Cancel a prepaid order	No	Automatically created in an open status	A prepaid pay type with an accounts receivable alternate refund type was used on the order

If necessary, the system creates a new bill-to account record when it processes the credit (for example, when canceling a prepaid order for a new customer).

The refund appears in the Work with Refunds menu option in a processed (P) status; the refund type is accounts receivable (A).

Credit disposition options: The options available for applying the credit include:

• apply toward the current order

• produce a refund check

• produce a credit card credit (if a credit card was used on the order)

• apply toward an invoice on the customer bill-to account

• have the system apply toward invoices based on invoice date

When applying the credit, you can choose to have the system retain the credit open item if there is any remaining balance, or produce a refund check for the customer. See the descriptions of the Default Check Credit Open Item Type (E82) and Default Credit Card Credit Open Item Type (E83) system control values.

Leave this field unselected to create a refund record that is available for processing through Work with Refunds and Process Refunds.

For more information:

• returning or exchanging items and how to apply a credit in order maintenance: Returning and Exchanging Items in Order Maintenance

• returning items in Work with Return By Item (WRBI)

• working with and processing refunds: Processing Refunds (MREF)

• using the Apply Credit Balance Pop-up window: Applying a Credit Balance in Order Maintenance

• defining pay types: Working with Pay Types (WPAY)