Receivables lets you create adjustments and chargebacks against transactions to which you are applying a receipt.
Use chargebacks to create a new debit item for your customer when closing an existing debit item. For example, your customer sends payment of $75 for a $100 invoice. You can apply the receipt to the invoice, then create a chargeback for the balance due.
If you use Oracle Trade Management, then you can create chargebacks against receipts when resolving cash claim investigations. You can use the Receipt Applications window to create a chargeback against a receipt. Or, Trade Management users can create chargebacks against transactions and receipts without any intervention required by a Receivables user. See: Working with Claims.
You can create multiple chargebacks and adjustments against each transaction, for positive or negative amounts.
Receivables lets you enter a chargeback against a credit memo or an on-account credit if they have a positive balance.
Receivables uses the transaction type of the transaction you are adjusting to validate the adjustment or chargeback amount. If the transaction type does not allow overapplication, you cannot enter an amount that would reverse the sign of the balance of the debit item. Chargebacks and adjustments do not follow the natural application rules; this lets you adjust transactions in either direction, regardless of the Natural Application flag. For more information, see: Transaction Types.
If the profile option AR: Cash - Allow Actions is set to No, the Chargebacks and Adjustments buttons are not available in the Applications window.
If you use Trade Management to track your customers' short payments and over payments (claims) on receipts, then the claims that you create in Receivables are automatically passed to Trade Management for claim tracking, analysis, and resolution. If a chargeback is required to resolve a claim, then the chargeback is created directly in Trade Management:
To resolve an invalid invoice related claim, the Trade Management user can create a chargeback against the related transaction.
To resolve an invalid non-invoice related claim (for a short payment), however, there is no related transaction to create the chargeback against. Instead, the Trade Management user can create a chargeback against the receipt that held the claim. A chargeback against a receipt brings the Cash Claims total closer to zero and increases the Applied total for the receipt.
Note: Trade Management passes additional information about the claim back to Receivables after the chargeback is created. View the chargeback's transaction flexfield (Trade Management context) in the Transactions Summary window to see the customer reason, customer reference, claim number, and claim reason.
You can view the Trade Management claim reason if you set up claim reasons correctly in Trade Management. See: Resolving Claims.
Alternatively, you can manually create a chargeback against a receipt in the Receipt Applications window in Receivables.
Both the chargeback application on the receipt and the actual chargeback transaction are created in the currency of the receipt. In the event of an exchange rate adjustment, Receivables calculates a foreign exchange gain or loss on the receipt for the functional difference between the chargeback transaction and the chargeback application.
For other resolution options, see: Working with Claims.
Receivables requires that you automatically number your chargebacks. The base number for your chargeback numbering sequences is determined when you install Oracle Receivables. See: Transaction Batch Sources.
Prerequisites
Navigate to the Receipts window.
Query or enter the receipt. See: Entering Receipts.
Choose Apply.
Select or enter the Transaction to which you want to apply this receipt. See: Applying Receipts.
Choose the Chargebacks button.
Enter the transaction Type and the Amount of this chargeback. The default chargeback amount is the remaining amount of the transaction. Receivables displays the new remaining amount in the Balance Due field. You can enter an amount greater than the balance due only if the Allow Overapplication option for this transaction type is Yes. For more information, see: Transaction Types.
If document numbering is enabled and the document sequence associated with this receipt is Manual, enter a Document Number for this chargeback. If the sequence type is Automatic, Receivables assigns a document number when you save.
Enter the Account for this chargeback. The transaction type provides the default account, but you can change it.
Enter the Due Date for this chargeback. The default due date is the value of the Chargeback Due Date parameter in the System Options window. For example: Current Date, Deposit Date, Open Invoice Due Date, or Receipt Date.
Open the More tabbed region, then enter a Reason for creating this chargeback and any Comments (optional). You can define additional chargeback reasons in the Receivables Lookups window. See: Defining Receivables Lookups.
Note: See: Applications Field Reference for a description of the Transaction Code field.
Save your work. Receivables uses the chargeback batch source to automatically number your chargeback and assigns the default payment term 'IMMEDIATE.'
Note: You can view the payment term, GL date, and other information about this chargeback in the Transactions window. To do this, perform a query using the chargeback number.
Note: If you have Trade Management installed, then the Trade Management user, not the Receivables user, will create these transactions to resolve invalid non-invoice related claims.
Navigate to the Receipts window.
Query or enter the receipt. See: Entering Receipts.
Choose Apply.
Select or enter the claim investigation application for which you want to create the chargeback. See: Applying Receipts.
Note: After entering a claim investigation application, you must first save the application record before you can enter a chargeback against it.
Choose the Chargebacks button.
Enter the transaction type of this chargeback. The default chargeback amount is for the full amount of the claim, and cannot be changed.
If document numbering is enabled and the document sequence associated with this receipt is Manual, enter a document number for this chargeback. If the sequence type is Automatic, Receivables assigns a document number when you save.
Enter the account for this chargeback. The transaction type provides the default account, but you can change it.
Enter the due date for this chargeback. The default due date is the value of the Chargeback Due Date parameter in the System Options window. For example: Current Date, Deposit Date, Open Invoice Due Date, or Receipt Date.
Enter a reason for creating this chargeback and any comments (optional). You can define additional chargeback reasons in the Receivables Lookups window. See: Defining Receivables Lookups.
Note: See: Applications Field Reference for a description of the Transaction Code field.
Save your work.
Receivables uses the chargeback batch source to automatically number your chargeback and assigns the default payment term 'IMMEDIATE.'
In the Applications window, Receivables automatically unapplies the claim investigation application and reapplies the claim amount to a chargeback with an activity of Chargeback Adjustment.
Note: You can view the payment term, GL date, and other information about this chargeback in the Transactions window. To do this, perform a query using the chargeback number.
Create adjustments to increase or decrease the balance due for an invoice, debit memo, chargeback, or commitment. For example, you apply a receipt to an invoice, but there is still an open balance of two dollars. You can create an adjustment to write off the remaining amount and close the debit item.
Note: If you create an adjustment during a receipt application (for example, to write off a small remaining amount) and then unapply the application later, Receivables reverses the adjustment and assigns it a status of 'Adjustment Reversal.'
Prerequisites
Navigate to the Receipts window.
Enter or query the receipt. See: Entering Receipts.
Choose Apply.
Select or enter the Transaction to which you want to apply the receipt. See: Applying Receipts.
Choose Adjustments.
Note: You can view the detail accounting lines for an adjustment in the form of a balanced accounting entry (i.e., debits equal credits) by choosing View Accounting from the Tools menu. You can also choose to view the detail accounting as t-accounts.
See: Viewing Accounting Lines.
Enter an Activity Name and choose the Type of adjustment you are creating. Valid adjustment types include Invoice, Charges, Freight, and Tax.
Enter the Amount of this adjustment. If you specify 'Invoice' as your adjustment type, Receivables requires that the amount of your adjustment be at least enough to close the item you are adjusting, and displays this value in the Amount field. If the amount of this adjustment is outside your approval limits, Receivables sets the status of the adjustment to Pending Approval when you save (unapproved adjustments do not update the balance due for an item).
Attention: You can enter an amount greater than the balance due only if the transaction type's Allow Overapplication option is set to Yes. For more information, see: Transaction Types.
Enter the GL Date for this adjustment (optional). The default is the later of either the transaction GL date or the current date. However, if this date is not in an open or future-enterable period, the default GL Date is the last date of the most recent open period. The GL date must be later than or equal to the GL date of the debit item you are adjusting and must be in an open or future-enterable period.
Enter the Adjustment Date (optional). The default is the current date, but you can change it.
Open the Account IDs tabbed region, then enter the GL Account for this adjustment (optional). The activity name provides the default GL account, but you can change it.
If you are using manual document numbering, enter a unique Document Number for this adjustment. If you are using automatic document numbering, Receivables assigns a document number when you save. See: Implementing Document Sequences.
Open the Comments tabbed region, then enter a Reason for creating this adjustment. Receivables prints your reasons on the Adjustment Register.
Note: An adjustment reason is optional unless you set the AR: Require Adjustment Reason profile option to Yes. See: Overview of Receivables User Profile Options.
Update the Status of this adjustment (optional). If this adjustment is within your user approval limits, you can choose any status. If you are reviewing a previously approved adjustment, Receivables skips this field.
Save your work. Receivables generates a unique number for this adjustment.