Typically to issue a Check for a refund the customer has to be setup in your Customer files - this new tool is used to issue refund checks to a customer who is not setup on in your Customer Files (aka: Cash Customer).

The refund sale still has to be processed as normal with a negative quantity on the item(s) to properly update the inventory quantities and accounting as shown below in a basic return of an item:

The RETURN is printed and billed, since this is a cash account the system will prompt for payment method when billing, select A. Paid By Cash as shown

Verify the amount if prompted - now that amount will be in the Deposits view in Accounting.  Find the negative (credit) record in the deposits view and right click on the record to receive the message for creating a check.

Select Yes
Select the appropriate Checking account when prompted 
The Adding / Editing Checking screen will appear just as it would for issuing a direct check, verify the check number as it will default in empty until verified, add to the Memo if desired and set the Debit amount for the Accounts Receivable General Ledger Account Number.

Due to formatting issues do not print the check from this view - you will want to select OK ([Ctrl] & [Enter]) or [F4] to close the Adding / Editing Checking view - the negative (credit) deposit record will now be gone.  Go to the Check Register and bring up the proper Checking Account - the check will be here in the Check Register view - select it and use the [F7] and A. print check option.

The refund check and the credit invoice will be in the Sales Ledger on the paid side.