Customer reimbursement functionality

Recently I was thinking over customer refunds and bumped into Customer reimbursement feature.

Check it out!

This feature has couple prerequisites:

  1. Customer must be tied with the vendor (If a customer does not have a vendor account, a one-time vendor account is automatically created for the customer).
  2. Customer must have credit balance.
  3. Customer balance amount must exceed the minimum reimbursement amount that is specified for your legal entity.

Customer setup

Go to Accounts receivable > Customer > All customers > Switch to the Customer Details > Expand Miscellaneous details fast tab


Make customer to be eligible for a reimbursement

Let’s make a customer payment through payment journal. Once you’ve done this you can go over customer transactions. You’ve made the credit with appropriate balance.


Setup Minimum reimbursement amount

Accounts receivable > Setup > Accounts receivable parameters > General fast tab

Specify Minimum reimbursement field


Run Reimbursement process

To run Reimbursement process you must be careful. My suggestion would be eliminating this feature at all, because if you didn’t specify a filter (customer range), all customers who “own” money from you will be transferred to vendor transactions. To fix by accident created transactions would be difficult and you even cannot imagine it.

Never mind, I am just showing you how it works.

Go to Accounts receivable > Periodic > Reimbursement

To reimburse specific customer accounts, click Select and specify the customer accounts in the query. If you leave it empty, AX will pick up all customers that have a < 0 balance.


Note: In my case I got an error message. I must have had incorrect number sequence setups. So I went to Accounts receivable > Setup > Accounts receivable parameters > Number sequence fast tab > found Reimbursement number sequence code > View details and added unique identifier for the number sequence. After that I re-run periodic operation and came up with successful message.



If you have successfully created a reimbursement, you will then receive the following infolog:


From now you may find out that new customer reimbursement transaction was created and settled with the original payment



Closed transactions:


Customer balance (You may notice that credit balance was removed):


Additionally, you may run Reimbursement report to look at the created reimbursement transaction (Accounts receivable > Reports > Transactions > Payments > Reimbursement).

Let’s see what is happening with the related vendor. You will see the same reimbursement transaction with the reimbursed balance.


After that you can create a vendor payment proposal in vendor payment journal and cut a check for the vendor.

The tricky part of this feature that you cannot reverse reimbursement transaction in usual way. I will show you how you can reverse it.

Go to General ledger > Journals > General journal.

Create a new journal with 2 lines inside.

One line is a Debit to the vendor.

Another line is a Credit to the customer (payment in essence).


Post the journal.

Check Customer transactions:


Check Vendor transactions:


Do not forget to settle newly created vendor transaction with the reimbursement transaction.

Note: In my case I didn’t see opened reimbursement transaction. So I went to the vendor transaction form and selected Approved flag on the General tab. After I was able to settle open vendor transactions because reimbursement transaction became visible.




I hope you find it beneficial!


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