AR Receipt from a Customer and Refund to a different Customer R12.1.3

Scenario: Some times for subsidy industry Customer pays the subsidized amount. Then this money has to be forwarded to the corresponding GOVT organization against which GOVT will pay the full amount.

Refund money to same customer is very familiar but here money will be refunded to different customer (GOVT org).

Setup Required:

1. Define a new Customer Account Hierarchical Relationship
2. Attached both Customer with that Relationship
3. Define “Refund” Receivable Activity

1. Customer Account Hierarchical Relationship Setup

Navigation: Oracle ReceivableàCustomeràRelationship Manager

Go to Setup tab. Then Click on Create

Put a meaningful Relationship name as you wish. Select “Yes. Circular relationships are not allowed” radio button. Then click next

Here you will see two segments one is ‘Subject’ another is ‘Object’.

Choose Subject Phrase = “Pay Form Of”, Subject Role Singular = PAY FROM CUSTOMER, Subject Role Plural = PAY FROM CUSTOMERS

Choose Object Phrase = “Pay To Of”, Object Role Singular = PAY TO CUSTOMER, Object Role Plural = PAY TO CUSTOMERS

Click Next then Finish.

Select ‘View details of this new relationship type’ then click on Go. Here click on Assign to Relationship Groups

Move “Pay within Group” and “Pay below Group” from Available Relationship Groups list to Assigned Relationship Groups for both ‘Pay To Of’ and ‘Pay From Of’ Relationship Phrase.

2. Attached both Customer with that Relationship

Now Create two Customer. Then query the parent Customer and Attach two Customers by Party Relationship.

Navigation: Query the Customer from Customer Master

Click Party Relationship. This relationship is different from customer relationship. Click on Add Another Row.

Search and select the Customer that you want to relate. Then search Relationship Role

Select Relationship Role as you defined earlier (Pay from Customer or Pay to Customer)

Save the record.

3. Define “Refund” Receivable Activity

Define Refund Activity

Give Name and Activity GL Account

Process Flow:

Lets we have relates Customer A and Customer B

Now create a receipt for Customer A and click on Apply button

In apply to field select Refund. Then click on Refund Attributes

In Customer name LOV you will find both Customer A and B. Here change the Customer (Select Customer B)

[ Here you may face some problem regarding this form. For this raise a SR to oracle. For my case Oracle suggest me to apply Patch 11791600. Though the patch includes other fixes the change is only in ARXRWAPP.fmb and ARXRWAPP.pld hence the change is in the receipt application form. This patch had solved my issue ]

In Customer Address field Change the Address

Select Refund Payment Method

Select Payment Term. Click on Apply. Save the Transaction

Click on ‘Refund Status’ to check the Payment Request and copy the Invoice Number

From Payables pay that invoice by Pay in Full concept by querying that Invoice.