Description of the illustration ''%s''deductions

When receiving payments from customers, a customer might reduce the amount of their payment for an unknown reason. The reduction of payment is also known as a short pay. The short pay can be associated with one invoice or a group of invoices. You can enter the short pay as a customer deduction in the Accounts Receivable system to be researched and resolved at a later time. A customer might also dispute an invoice before sending payment, for which you can also enter a deduction.

When you enter a deduction, the system creates records in the Customer Ledger (F03B11), Receipts Header (F03B13), and A/R Check Detail (F03B14) tables. When you post the deduction, the system updates the general ledger and creates associated records in the A/R Deduction Management (F03B40) table.

The Deduction Manager can then research the reason for the short pay or dispute against and invoice to determine how to resolve it. The various resolution methods include creating a chargeback, applying a credit to the deduction, treating it as a special discount, reversing (or reopening) the invoice, writing off or voiding the deduction amount, or request additional information. Each resolution method has different implications to the invoice and receipt records and the general ledger as described throughout the chapter.