1. Line Servicing User Guide
  2. Batch Transactions
  3. Payments
  4. Payment Maintenance Tab
  5. Refund Payment Transaction

15.3.9.4 Refund Payment Transaction

The Refund option in Payment Maintenance screen helps you to refund the payment received from the customer during the servicing stage of Line of credit.

Payment refund facility is available for both Single Account and Multi-Account. In case of Multi-account, payments appropriated to different customer accounts can be refunded in a single AP requisition.

Payment refund can be processed either in source currency in which the initial payment was posted on account or in account currency in which the account is operated. The same can be defined in the system parameter TPE_PMT_REFUND_CURRENCY_SRC_CD as either Payment Currency or Account Currency. However, there is NO exchange rate applicable.

If it is Payment Currency then system considers payment amount and if it is Account Currency then system creates the requisition with the total transaction amount of one or multiple accounts where payment was allocated.

Note the following before posting payment refund transaction:
  • Refund option is available only if the status of payment is POSTED.
  • Account status should be either ACTIVE or CHARGED-OFF of all associated accounts to payment.
  • Accounts with status CLOSED, VOID, TRADED, PAID-OFF and TERMINATED are not allowed for refund.
  • In case of Master and Linked accounts, the status of payment should be GOOD in all associated accounts. Else, system displays an error and does not allow to post the transaction.
  • A refund in case of Master and Linked accounts is processed either on all accounts or none. Hence if there is any exception in any of the associated account(s), the transaction is not executed on any account.
  • If the Payment Refund transaction is marked for Authorization, system allows to post for single account payment and displays an error for multiple account payment indicating Transaction marked for authorization and hence cannot be processed.
  • If the refund payment results in Excess Payment on any account, system reverses the excess payment balance.
  • While posting a payment refund, ensure to select appropriate reason code from Reason drop-down list. This list is populated with applicable reason codes based on lookup type TXN_REASON_CD and sub type REFUND. In case of a mismatch, system displays an error indicating Invalid Reason code selected for Payment Refund. You can also post PAYMENT REFUND (PMT_RF) monetary transaction from Customer Service > Maintenance screen.
Scenarios to be considered during Multiple & Master Accounts Refunds

Table 15-25 Scenarios

Scenario Payment Requisition Type
If multiple payments are associated to a payment System generates requisition with Account Currency.
If the payment was posted using Customer ID or if there is a common customer in all accounts involved in current payment System creates only one payment requisition of entire payment amount using the customer details.
  • System validates if Master Account # was used during payment posting and creates only one requisition of entire payment amount using the master account details.
  • In all above scenarios, combined AP requisition will be generated, but individual payment refund transaction is posted on all involved accounts.
  • The AP requisition is generated similar to single payment except that amount is total of all payments.
  • The customer information is either based on Customer # used for Customer Based Payment or Primary Customer of Master Account used for Master Account Based Payments. However, if Customer # or Master Account # was not used during Payment Entry, but a Primary Customer is common between all the involved accounts, then system generates one AP requisition.

    Note:

    You can also post Payment Refund Transaction to refund payment at account level from Customer Service > Maintenance screen.
To refund payment transaction
  1. On the Oracle Financial Services Lending and Leasing Application home screen, click the Servicing > Servicing > Batch Transaction > Payments > Payment Maintenance tab.
  2. In the View Options section, click Posted.
  3. In the Search Parameters section, use Account number, Payment Date, Payment Amount, or Reference number fields and Search button to locate the account you want to work with. The system displays payments matching your search criteria in the Payments section.
  4. In the Payments section, select the payment that you want to refund.
  5. Select appropriate reason code from Reason drop-down list. This list is populated with applicable reason codes based on lookup type TXN_REASON_CD and sub type REFUND.
  6. Click Refund, and click Yes in Refund Transaction confirmation dialog to validate and the post the refund transaction.
Following are the transaction parameters used during refund:
  • Transaction Date = GL Date
  • Payment Date = Transaction Date of posting transaction
  • Payment Amount = Payment Amount specified against each account
  • Refund Amount = Payment Amount
On posting the transaction:
  • system refunds the FULL payment which are GOOD PAYMENTS on every account associated to payment.
  • Generates AP transaction with equivalent amount corresponding to each account for payment refund with reference to system parameter - UIX_REFUND_PAYMENT_MODE (REFUND PAYMENT AS (CHECK/ACH)).
  • Adjust the Due buckets and delinquency counters, once the payment is successfully refunded.
  • Records the status of payment refund in the Customer Service screen’s Transaction History > Transactions tab.

Parent topic: Payment Maintenance Tab