Here's everything you need to know to be able to fully refund a Credit Memo.
Normally, a Credit Memo will give credit against a future purchase. However, if the credit holder decides they'd rather have a refund (and it fits within your terms), you can do that in ERP.
To start, go to Accounts Receivable > Credit Memo.
Click Apply.
From here, you have two options:
1: from Credit Memo List screen
Select the credit memo you want to refund. Click the Action button > Refund Balance Amount.
The Select Debit/Credit Account menu will appear. Use the magnifying glasses to select the debit and credit accounts you want to use for this refund. The account IDs will populate automatically. Click OK.
A notification will appear.
2: from Credit Memo Management screen
Click the credit memo you want to refund. On the Credit Memo Management page, click Action, then click Refund Balance Amount.
The Select Debit/Credit Account menu will appear. Use the magnifying glasses to select the debit and credit accounts you want to use for this refund. The account IDs will populate automatically. Click OK.
A notification will appear.
Now, still under Accounts Receivable, go to Refund Receipt Processing.
Click Apply. At the top, you will see a receipt for the credit memo we just refunded.
For more on refunds, check out How do I manage refunds?