How You Issue Manual Refunds

You can issue manual refunds for both credit card and non-credit card transactions. Depending on your implementation, you can also issue refunds for overpayments on transactions.

Considerations for manual refunds include:

• Rules for Issuing Refunds

• Non-Credit Card Refunds

• Credit Card Refunds

• Refunds for Overpayments

Rules for Issuing Refunds

Before you can issue a refund you must unapply the receipt amount. You can either unapply the amount of the refund from one or more application lines on the receipt, or you can apply an on-account credit memo in the amount of the refund to the original receipt.

These rules apply to issuing refunds:

• You can't refund more than either the original receipt amount or the remaining unapplied amount.

• You can only refund original receipts that were either remitted or cleared.

• You can't issue a credit card refund unless the customer payment was made by credit card.

Non-Credit Card Refunds

You can issue refunds for receipts or on-account credit memos.

To issue a non-credit card refund:

1. Unapply the amount to refund from the receipt or credit memo.

2. Issue the manual refund, and enter the values required by Payables. This refunds the amount to the original receipt customer.

   If the refund is by bank account transfer, you must enter the customer bank account.

3. Save the refund and receipt.

Receivables sends a refund request to Payables, which in turn validates the refund information and sends a payment request to Payments.

Credit Card Refunds

You can issue credit card refunds for receipts only. Credit card refunds update credit card transactions that didn't complete, for example, the customer returned the product that was originally charged to the credit card number; or a charge was mistakenly applied to an incorrect credit card number.

To issue a credit card refund:

1. Unapply the credit card amount to refund from the receipt.

2. Issue a manual credit card refund to create a negative miscellaneous receipt for the amount.

3. Run the Create Automatic Remittances program to remit the negative miscellaneous receipt and initiate the refund.

Receivables submits a refund request directly to Payments to create the disbursement. Payments applies the refund to the same credit card used on the original transaction.

If you're correcting a payment to an incorrect credit card number, then after you issue the credit card refund, assign the correct credit card number to the transaction as the payment instrument and run the Create Automatic Receipts program to create a payment for the transaction.

Refunds for Overpayments

During lockbox processing, Receivables identifies overpayments after receipts are applied to transactions. Depending on the details of your setup, Receivables can suggest for your review overpayment amounts as refunds to your customers.

If you decide after review to refund an overpayment, you can manually issue a refund up to the total amount assigned to your refund approval limits.