Why is Bill Refund Processing creating adjustments

Would like to know why the Bill Refund Processing program is creating adjustments. 

• Accounts Receivable
• General Billing
• Bill Refund Processing (arrefund)
• Miscellaneous Cash Refunds

A Miscellaneous Cash payment is being refunded. 

When a Miscellaneous Cash Receipt is created, the system creates a Category 2 bill that is immediately paid. The Category 2 bill is functional only and cannot be viewed in programs like Bill Inquiry. When refunding a Miscellaneous Cash Receipt, the functional Category 2 bill that was created and paid must also be reduced so that there are funds available to refund back to the Customer. 

Additional resources for working in Bill Refund Processing can be found here: Master Article - Bill Refund Processing