How to perform Supplier Refund?
Our organization created a payment refund process in Payments. But the process we created based off How to Close a Credit Memo with a Refund Payment Type ( Doc ID 1962102.1 ) is not working as intended.
Our thought was that AP create a credit memo then would create a payment as a Refund, tying the credit memo to this payment. So to not inflate cash, we would create accounting rules to post the payment to a clearing account while it waits for the actual refund from supplier vs. hitting cash.
Once the fund are recieved in the recievables account, then AR would create an transaction and palce it on account, then create a receipt to clear the transaction. It would clear against the clearing account thus offsetting the refund payment.The issue is that the payment refund creates a Cash Management item that would sit unreconciled. The cash from the supplier does not go the payables bank account but to the recievable bank account (rightly so for controls and security).