Processing the rejected refunds

[Former Member]

Hi All,

At my client, we are allowing credit card refunds to the customers.

Refunds would be posted by assigning the payment method to the credits and then executing the Payment Run (FPY1) program.

In a few instances, these refunds could be rejected and may not be processed by the Bank.

Bank would then send the file of rejected refunds.

To reflect these rejected refunds in FICA, we are considering following 2 options

a) A custom program would reverse the Refund documents and associated credit will be open again. Custom program would also  remove the payment method assigned to the credit.

b) Post a Return (using program RFKKCOLR) against the Refund document and the credit will be open again. However, refund reason config could be used to remove the payment method the credit automatically.

Which one of the above 2 options would you recommend? Or would you please suggest some other better alternative?

Many Thanks.

Regards,
Devang

[AmlanBanerjee · Accepted solution]

Hi Devang,

If you do not have much complexity in the reporting space like seperate monthly reporting for return and refund rejections, I would recommend you to use the return functionality for processing the rejected refunds.

You can use seperate return reasons for rejected refunds to identify them. Using this functionality would be helpful in the sense that your requirement will be covered fully by the SAP standard process.

However, if you have complex reporting for these two processes, then you can use Option(a)

Hope it helps.

Thanks,

Amlan