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Former Member

refund best practices

Hi all,

we have a situation where if a payment is incorrectly posted to an account FP40 is being used to move the incorrectly posted item to the correct account after resetting the clearing on the incorrect account (the payment having cleared items on the incorrect account).  However, if we have to refund an item we are having issues doing this as it won't let us do a reversal of a refund document.

I wanted to know what is the best practice regarding refunds. My understanding is that FP40 should not be used to transfer incorrectly posted payment items and that if a payment is posted incorrectly it should be reversed out and reposted using a payment lot to the correct account. please provide feedback.


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1 Answer

  • Jul 23, 2012 at 02:16 AM


    For transferring any incorrect payment to the target account, the best way is to route the incorrect payment to payment clarification worklist first and then from there you can allocate the same to the target account.

    By this approach, you don't have to perform any other transactions, and the original payment item can also be easily identified.

    Now, if you want to refund the payment item, you can easily mark it for refund, by putting in the payment method at the document level and then run a FPY1 which will post a refund document and can be send to the customer.

    Hope it helps.



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    • You can post the debit and credit entries through FPE1.

      Now to answer your second query.

      If the payment medium job has not been triggerred, then you have to first reverse the refund document.

      Performing this open up the payment document that you were supposed to refund.

      Then you can route that payment item to Payment CWL and then allocate it to the correct account.

      So in this scenario, you dont have to post any extra entries to offset the refund amount.