Concept: Customer Refunds

Workday provides the ability to create a customer refund for a credit on a customer account. You can create a customer refund only if:

The payment received is on-account and there's a deposit.

The payment has a credit adjustment.

Refund from Payment on Account

When you receive a payment for an already paid invoice, you can place it fully on-account. When you receive a refund request from the customer, you can access the

Create Customer Refund

task to process the refund. The payment that the customer has on account displays as an option for sourcing the refund.

Refund as Credit Adjustment

You might have a customer who paid in full for an order, but then requires a refund because of an issue with an order.

Example: The customer receives and pays for 1000 chairs. Upon inspecting the entire order, the customer discovers damage to some of the chairs and submits a refund request. You can then access the

Create Adjustment

task from the related actions menu of the customer invoice to begin the refund process.

Payment of Refunds

Once you create a refund, you can process it with the

Create Settlement Run

task. The Workday settlement engine creates the accounting for the refund, and enables you to print and send out a refund check. When you refund a direct debit payment, the settlement engine creates both the deposit and the payment. For credit card refunds, the settlement engine creates the deposit and payment through Cybersource.

When you settle intercompany transactions originating from customer refund payments processed by the settlement company on behalf of its affiliate company, you can view these details on the

Intercompany

tab of the customer refunds journal:

The cash account of the settlement company to record the impact of the refund payment on cash.

The intercompany receivables account of the settlement company to record the amounts due from its affiliate.

The intercompany payables of the affiliate company to record the amounts due to the settlement company.

Separate Refund Payments in Settlement Runs

Some of this functionality is only available when you opt in to the

Customer Refunds Optimization

feature on the

Maintain Feature Opt-Ins

report.

When you process customer refund payments in a settlement run, Workday groups the refund payments for the same:

Bank account.

Company.

Currency.

Payee.

Payee remit-to address.

Payment type.

You can also create separate payments for the customer refunds in a settlement run by selecting the

Customer Refunds

check box when you create or edit customer payment details. When the payee’s profile is configured to separate payments for refunds, Workday processes approved customer refund payments separately. In the settlement run, you can view the:

Customer refund count in the

Payment Information

section.

Customer refund payment details on the

Customer Refund Payments

tab.

You can also use an

Always Separate Refund Payments

option:

In custom reports.

On the Get Customers
and Submit Customer
web services.

You can view customers that always separate refund payments when you create a copy of the

Find Customers with Facet Search

standard report.

Create Manual Settlement Runs

Steps: Use Settlement