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Chargebacks

You create chargebacks to decrease the balance of an invoice and to create another debit item for the same amount. Receivables handles chargebacks the same as invoices, but also creates an adjustment to decrease the balance of the invoice.

Receivables uses the following tables to store your chargeback information:

Consider the invoice I-101 created in the first example of this essay. You receive a payment for 2000 on June 1, 1994, and decide to create a chargeback, CB-101, for the balance of the invoice, 4400.

This transaction is represented as follows:

RA_CUSTOMER_TRX
customer_trx_id trx_number bill_to_customer_id trx_date
765432 CB-101 ABC Inc 01-Jun-94

RA_CUSTOMER_TRX_LINES
         
customer_trx_
line_id
customer_trx_id link_to_cust_
trx_line_id
line_type extended_
amount
711 765432   CB 4400

Receivables creates one record in RA_CUSTOMER_TRX_LINES for the chargeback with a line_type of 'CB' and the extended_amount equal to the balance of the invoice.

There is no impact to the RA_CUST_TRX_LINE_SALESREPS.

RA_CUST_TRX_LINE_GL_DIST
         
cust_trx_line_
gl_dist_id
code_combination_id customer_
trx_line_id
account_class amount
660116 01-1200-1000-3000 NULL REC 4400
660117 01-8100-1000-3000 711 REV 4400

Receivables inserts two records into the RA_CUST_TRX_LINE_GL_DIST table. The code_combination_id of the REC record stores the receivable account distribution for the chargeback. The code_combination_id of the REV record stores the revenue account distribution for the chargeback.

AR_ADJUSTMENTS
adjustment
_id
amount customer_trx
_id
type payment_
schedule_id
code_
combination_id
57931 -4400 101467 INVOICE 30191 01-8100-1000-3000

When the chargeback is created, Receivables inserts a record into AR_ADJUSTMENTS to record an adjustment against the invoice. The amount column equals the inverse of the amount_due_remaining on the invoice payment schedule in the AR_PAYMENT_SCHEDULES table. The customer_trx_id and the payment_schedule_id columns reference the original invoice.

For chargebacks, the type column is always INVOICE. The code_combination_id column stores the revenue account of the chargeback. This transaction will offset the REV distribution from the RA_CUST_TRX_LINE_GL_DIST table. To link this adjustment with the chargeback, the chargeback_customer_trx_id column, which is not shown, stores the customer_trx_id of the chargeback.

AR_PAYMENT_SCHEDULES
                 
payment
_schedule
_id
amount
_due_
original
amount_
due_
remaining
customer
_trx_id
trx_
number
status amount
_applied
class amount_
adjusted
565785 4400 4400 765432 CB-101 OP NULL CB NULL

The class column, CB, identifies this payment schedule as a chargeback. The example chargeback has a status of OP (open) and an amount_applied of NULL because no payment has been applied against it. The amount_due_original and amount_due_remaining columns equal the amount of the chargeback.

AR_PAYMENT_SCHEDULES
                 
payment
_schedule
_id
amount
_due_
original
amount_
due_
remaining
customer
_trx_id
trx_
number
status amount
_applied
class amount_
adjusted
30191 6400 0 101467 I-101 CL 2000 INV -4400

Receivables updates the invoice payment schedule in the AR_PAYMENT_SCHEDULES by reducing the amount_due_remaining column to zero, to reflect the application of the chargeback to the invoice. The amount_adjusted column equals the amount of the chargeback and the status column is changed to closed (CL).

See Also

Adjustments


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