How to Refund/Return an AP Prepayment in Oracle Payables (eBS)?

There are situations when your supplier is returning your prepayment (advance payment) and you have to reflect this transaction in your bank statement.

Question

 How can we cover this flow in Oracle eBS Payables (AP)?

Basic Solution

Solution I always suggested is:

1.    Create a mixed invoice for supplier that is returning your prepayment

2.    Create a line with amount 0

3.    Apply prepayment by checking both Apply and Prepayment on Invoice checkboxes

4.    Validate mixed invoice

5.    Pay mixed invoice using a Refund payment type from your bank account   

Extended Solution 

Same solution with some additional steps may be used for the following cases:

• Prepayment sent to supplier X have to be applied to invoice received from supplier Y
• Prepayment sent to employee X have to be applied to invoice received from employee Y

Additional steps:

1. The payment from above point I.5 have to be from a “dummy bank account” with a clearing GL cash account 
2. Create invoice from supplier Y/expense from employee Y 
3. Pay invoice from supplier Y/expense from employee Y from same “dummy bank account” 

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