AR Cash Receipt / RMA with CM

I’m trying to figure out the best method to handle the situation below.
I am pretty “familiar” with E10 all around, but I recently took over AR and have not had any on hand training or a set process on how things should be handled on a business level(long story short: the previous person was let go so I could step in and do things correctly because said person cut a LOT of corners and would not do things correctly) well, I didn’t really get “training” because of the situation and not sure how things are really suppose to be handled until our consultant comes through and trains me on the correct way…

So, we sold an item and shipped/invoiced item, we received payment in Cash Receipt and posted said payment.
They then later decided to return it and an RMA was created with a CM attached.

How should I go about resolving this?
I will need to attach the CM to the payment… but technically the initial payment was reversed.

How would you handle this?
Adjust Cash Receipt and add CM
Reverse Cash Receipt and re enter payment and attach CM to invoice
or ?

This may be a stupid question, but we do have an Epicor consultant coming in to help with understanding a set procedure and how things should be handled within AR, but with COVID, idk when that will be and in the meantime, I would like to resolve this and have a basic understanding how one should go about this scenario.

Thank you,

The payment has already been processed. Why not just send them the CR and let them apply it to the next invoice?

Charlie Smith

CRS Consulting Svcs

(860) 919-1708

I would but in this case (I should of added) that we sell a few items via ebay since we normally sell B2B.
They placed an order through ebay, they paid via PayPal. The payment was entered into CR and posted.
I can’t send the CM to the end customer, since ebay/Paypal refunded the customer directly back to the payment method they used as the return took place within ebay.

Write the CM for the returned item.

Do an AR Adjustment zeroing the CM and adjust it to the bank transfer account.

Write a manual AP check to the customer using the Bank Transfer account as the expense account.

Returns à Accounts Receivable à Bank Transfer à Cash Account


@shetay29 If you can reverse Cash Receipt Entry, then reverse it, which will open the invoice. Then do RMA for the part and create a credit memo. Then apply Credit Memo against the invoice. If you can’t reverse the Cash Receipt Entry, then follow the process as suggested by @CTCharlie