Understanding How to Convert Unapplied Receipts to Credit Memos

You must convert unapplied receipts to credit memos to issue refund checks to customers. For example, you may need to create a refund check if a customer overpays.

Although unapplied receipts represent a credit to the customer, the system does not allow you to process unapplied receipts (RU document type) in the Credit Reimbursements program (R03B610). The system does not process the RU document type because unapplied receipts are generated from a receipts program, which creates additional records in the Receipts Header (F03B13) and Receipts Detail (F03B14) tables. Therefore, to reimburse a customer for an unapplied receipt, you must close the unapplied receipt and create a credit invoice to replace the unapplied receipt. You can do this through a batch process or a manual process.

To use the batch process, follow these steps:

1. Run the Convert Unapplied Receipts to Credit Memos program (R03B620). Use data selection to specify one or multiple unapplied receipts.

   When you run the Convert Unapplied Receipts to Credit Memos program, the system converts unapplied receipt records in the F03B13 and F03B14 tables to credit memos in the Customer Ledger (F03B11) table.

2. Run the Credit Reimbursements program. You can run this program manually or use the processing options in the Convert Unapplied Receipts to Credit Memos program to run the program automatically.

   When you run the Credit Reimbursements program, the system pays open credit memos and generates vouchers to reimburse the customer.

To use the manual process, follow these steps:

1. Create an invoice for a zero amount.

2. On the Receipt Entry form, select the unapplied receipt.

3. From the Form menu, select Select. On Select Invoices, locate and select the zero-amount invoice.

4. Enter 10 in the Type Input Code field and specify the unapplied amount in the Payment Amount field.

5. Click OK.

If you post the unapplied receipt before applying it against the invoice, the open amount is changed to zero (blank) and the receipt is closed. The open amount on the invoice is changed from zero (blank) to the negative amount applied from the receipt.

If you do not post the unapplied receipt before applying it against the invoice, the system deletes the unapplied records in the F03B14 and F03B11 tables, and updates the invoice with the negative amount. Then, when you run the Credit Reimbursements program, the system accesses the invoice and creates a voucher to reimburse the customer.

You can reimburse unapplied receipts whether the receipt is posted or not posted.