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Handling Refunds- need a solution

Update:11-30Source: network consolidation
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My client is on 4.6c and although they are up and running in AP, the vendor and customer is not linked in customer master.  Is there a solution in handling refunds?  I know this has something to do with payment method however what t-codes make a refund happen etc I don't know.  I am an A/R consultant and this client, the A/R group can initiate refunds and process job.
Input would be greatly appreciated.
Points promised.

The Best Answer

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> Thank you Barry-
>
> Can you give me specifics?  Documentation?  I am not
> clearly understanding what you did here.
>
> Many thanks!
>
> POINTS PROMISED
OBA7 - Document Type   -  Make reference mandatory for linking into Invoice
FBZP - Payment Type
Create a "Credit" for the Customer on this document type.
Run APP / F110 and select this document type and for all customers and it will create a refund.
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