you will need to find the caret position first as follow: 
    var caretPos = function() {
        var el = $("#details").get(0);
        var pos = 0;
        if('selectionStart' in el) {
            pos = el.selectionStart;
        } else if('selection' in document) {
            el.focus();
            var Sel = document.selection.createRange();
            var SelLength = document.selection.createRange().text.length;
            Sel.moveStart('character', -el.value.length);
            pos = Sel.text.length - SelLength;
        }
        return pos;
    }
taken from :here
then you do:
var textofDetails = $("#details").val();
jQuery("#detail").val(textofDetails.substring(0, caretPos) + "<br/>" + textofDetails.substring(caretPos) );
Major EDIT:
no need for all the above ; your function will be
function replaceNewLine(){
    jQuery("#detail").val().replace(/\\n/g, "<br />");
}
source: so - here