Understanding Invoice Match with Chargeback (TI Codes 11 and 16)

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.

You can use these type input codes for generating a chargeback invoice:

TI Code	Usage
11	Use this type input code when you want the system to create a chargeback for an unearned discount. The system automatically populates the Chargeback Amount field with the discount available.
16	Use this type input code when you want the system to generate a chargeback for a short payment that is not an unearned discount. The system automatically populates the Chargeback Amount field with the difference between the payment amount that you enter and the open amount of the invoice.

When you enter a receipt with a chargeback, the system generates the records in these tables:

Table	Record Generated
F03B11	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. The chargeback invoice record has these characteristics: It establishes an audit trail to the receipt payment ID. It establishes an audit trail to the original invoice, if the chargeback was generated for a specific invoice. It is expressed as a debit amount. It has a batch type of either RB (if generated from a receipt application) or DB (if generated from a draft application). It contains a posting status of D (posted). The posted codes for the payment records in the F03B13 and F03B14 tables remain blank until the receipt or draft is posted.
F03B13	The payment record.
F03B14	The detail record that pays the invoice from which the chargeback was generated.

Table

Record Generated

F03B11

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.

The chargeback invoice record has these characteristics:

It establishes an audit trail to the receipt payment ID.
It establishes an audit trail to the original invoice, if the chargeback was generated for a specific invoice.
It is expressed as a debit amount.
It has a batch type of either RB (if generated from a receipt application) or DB (if generated from a draft application).
It contains a posting status of D (posted).

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

F03B13

The payment record.

F03B14

The detail record that pays the invoice from which the chargeback was generated.

Regardless of the type input code you use, if you specify a chargeback amount and reason code, the system creates a chargeback record.

After you enter receipts and drafts, you must post them. When you post payments with chargebacks, in addition to the bank account (or draft receivables account) and A/R trade account, the system might update a different A/R trade account for the chargeback amount, depending on whether you complete the Chargeback G/L Offset field on the payment record.