Receivables Credit Memo paid via ACH (Rebates to Customers)

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When we implemented Oracle about 2 years ago we were told we could issue rebates to customers via AR. We would add banking information to the customer, create the ACH, issue the refund and the rebate would be deposited into the customers bank account (via our bank interface software), we already pull fundsvia ACH  from our customer accounts for AR binvoice payments. In attempting to set this up it looks like an invoice is created in AP and then the funds are added back via AP. Is this correct? I don't see a way to do this without using AP