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Creating Chargebacks

Creating Chargebacks

Concept

When applying a payment to an invoice, you might want to create a chargeback if the amount that you receive is less than the open amount for the invoice. For example, a customer might issue payment for an invoice, less the discount, even though the terms of the discount have expired, or they might refuse to pay freight charges.

 

When you enter a receipt with a chargeback, the system generates records in the Customer Ledger table (F03B11), the Receipts Header table (F03B13), and the Receipts Detail table (F03B14). The Customer Ledger record is a chargeback invoice record, which takes the place of a specific invoice, for the disputed amount that you want to charge back to the customer. The system closes the original invoice and marks it as paid, and creates a new chargeback invoice record that it assigns a document type of RB.

 

Chargeback invoice records:

• Establish an audit trail to the receipt payment ID.

• Establish an audit trail to the original invoice, if the chargeback was generated for a specific invoice.

• Are expressed as a debit amount.

• Have a batch type of either RB (if generated from a receipt application) or DB (if generated from a draft application).

• Contain a posting status of D (posted).

 

The posted codes for the payment records in the F03B13 table and F03B14 table remain blank until the receipt or draft is posted.

 

Prerequisites

 

Before you complete this task, you must:

• Verify that the chargeback A/R trade account is set up for the AAI item RCxxxx, where xxxx is the chargeback general ledger offset code.

• Verify that the processing options on the Chargeback tab are set up.

• Verify that the values that you want to use for the chargeback reason code are set up in UDC 03B/CB.

Procedure

In this task, you will enter an invoice match receipt with a chargeback amount.

Step Action
Navigate to the Standard Receipts Entry program (P03B102) on the Manual Receipts Processing menu (G03B12).

Click the Manual Receipts Processing menu.

Click the Standard Receipts Entry menu.

Use the Work with Customer Receipts Inquiry form to locate and select an existing receipt.
Click the Add button.

Use the Receipt Entry form to enter a standard unapplied receipt.
Use the Company field to enter a code that identifies a specific organization, fund, or other reporting entity.

Enter the desired information into the Company field. Enter “1“.

Click in the Payor field.

Use the Payor field to enter a user-defined name or number that identifies an address book record.

Enter the desired information into the Payor field. Enter “3501“.

Click in the G/L Date field.

Use the G/L Date field to enter the date that identifies the financial period to which the transaction will be posted.

Enter the desired information into the G/L Date field. Enter “123115“.

Click in the Receipt Date field.

Use the Receipt Date field to enter the date on the check or the date that you enter the receipt into the system. The receipt date is used for information and reporting purposes only.

Enter the desired information into the Receipt Date field. Enter “123115“.

Click in the Receipt Number field.

Use the Receipt Number field to enter an alphanumeric code that identifies a check or receipt.

Enter the desired information into the Receipt Number field. Enter “VP851“.

Click in the Receipt Amount field.

Use the Receipt Amount field to enter the actual amount of the receipt or payment.

Enter the desired information into the Receipt Amount field. Enter “900.00“.

Click the Form button.

Click the Select menu.

Use the Select Invoices form to select specific open invoices for a customer and apply them to a receipt.
Click the Find button.

Click the 5478 option.

Click the Select button.

Notice that when you select the invoice, the system displays a check mark next to your selection.
Click the Close button.

Use the TI (Type Input) field to enter a code that specifies how the system processes a transaction during receipts entry. The system will not process transactions with a blank or invalid type input.

Enter the desired information into the T I field. Enter “16“.

Click in the Payment Amount field.

Notice that the system automatically populated the Payment Amount field.
Notice that the system automatically populated the Chargeback Amount field. This is the unpaid invoice amount for which you want to create a new invoice record to charge the customer.
Click the OK button.

Click the Cancel button.

Click the Close button.

You have successfully entered an invoice match receipt with a chargeback amount.

End of Procedure.

Ayman Refat
Over 20 years of experience in IT area, working as Oracle JD Edwards Developer with expertise in Windows Server, SQL Server and Microsoft Exchange Server, experience in Linux operating systems (Debian and Redhat), VMWare ESX / ESXi, Novell Netware, relational databases like Oracle 10/11g and backup solutions from Computer Associates. Large experience in high-end servers from Dell and HP, having the following certifications: Microsoft: MCP, MCSE, MCDBA, MCSA and MCT (2008 ~ 2013), Computer Associates: Technical Specialist – Storage and Backup Solutions,
http://www.AymanRefat.com

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