Credit Memo Refund

Hello,

Can someone help me to understand the following, we have a credit memo and we want to give the money back to the customer so we did the following:

-          Credit memo of -100

-          Receipt of 100 with two lines, one for the credit memo (negative) and another for the refund (positive)

We are able to generate the invoice in AP correctly but we could not understand the accounting in the receipt:

Db – Cash Account

Db – Receivable Account

Cr – Refund Account

Cr- Unapplied Cash

Do I need to nullify manually the created Credit Memo to remove the amount from Unapplied Cash?