Accounts Receivable refund adjustments only apply to Customer Cash Receipts. If all of the invoices for the customer are paid, create a customer cash receipt using a credit adjustment in Option 1. If the customer has negative or credit invoices that need to be refunded, apply a cash receipt to the credit invoices in Option 2.

Option 1 - Create a customer cash receipt from paid invoices:

1. Unapply cash from an invoice that has an amount greater than the amount being refunded.
2. Enter a Billed Credit or AR Credit against the invoice for the amount being refunded. For more information on entering an adjustment in Accounts Receivable, see article 19621 DocLink: How do I adjust or write off an invoice in Accounts Receivable?
3. If the adjustment amount entered in step 2 was the full outstanding amount on the invoice, skip to step 4. If the adjustment amount was less than the full outstanding amount of the invoice apply the cash receipt to the invoice again.
4. A customer cash receipt, shown as a Cs cs rc, will be left for the amount you want to refund. Follow the link to article 17191 DocLink: How do I refund a cash receipt to an Accounts Receivable customer? below for steps to issue a refund.

Option 2 - Create a customer cash receipt from a credit invoice:

1. Unapply cash from a positive invoice.
2. Select the Customer cash receipt and click Apply. Select the negative invoice, then the positive invoice. Click OK.
   Note: Click Unapply to de-select any invoices if they are selected automatically.
3. Follow the link to article 17191 DocLink: How do I refund a cash receipt to an Accounts Receivable customer? below for steps to issue a refund.