Channel Revenue Management Claim Creation and Settlement for Lockbox Receipts

You can initiate claims in Channel Revenue Management from lockbox receipts automatically during a run of the Process Receipts Through Lockbox process, for both invoice-related and non-invoice-related underpayments and overpayments.

Use the Receivables Standard Receipt Import FBDI template to prepare your lockbox data, and use the Process Receipts Through Lockbox process to import and process lockbox receipts and generate claims for related underpayments and overpayments:

• Use the Customer Reason 1 to Customer Reason 8 columns in the Record 6 - Payment and Record 4 - Overflow Payment tabs to enter customer reasons for deductions and overpayments for values in the Transaction Reference 1 to Transaction Reference 8 columns.

• Use the Customer Reference 1 to Customer Reference 8 columns in the Record 6 - Payment and Record 4 - Overflow Payment tabs to enter any customer references related to deductions and overpayments for values in the Transaction Reference 1 to Transaction Reference 8 columns.

• Select Yes with Claim in the Post Receipt with Invalid Transaction Reference as Unapplied parameter of the Process Receipts Through Lockbox process to initiate claims in your lockbox receipts.

Settings That Affect Claim Creation and Settlement for Lockbox Receipts

These settings affect Channel Revenue Management claim creation and settlement for Lockbox receipts:

• Ensure that the corresponding setups in Channel Revenue Management are completed:

  • Manage channel settings.

  • Manage user statuses.

  • Create claim types and map them to Receivables invoices and credit memos.

  • Create claim reasons and map them to Receivables credit memo reasons.

  • Define claim sources for the Receivables settlement methods of Deduction and Overpayment.

• Predefined Channel Revenue Management transaction source: This transaction source is assigned to Receivables credit memos and invoices created by the Settle Customer Claims process when a claim is settled.

  Note: Don't copy or update this transaction source.

• Predefined Subledger Journal Entry Rule for the Event Class of Receipt and Accounting Class of Claim Investigation.

• Claim Investigation Receivables activity type: Update the predefined Claim Investigation Receivables activity type for the applicable business unit:

  1. Navigate to the Create Receivables Activity page.

  2. Enter the business unit and activity name.

  3. In the Activity Type field, select Claim Investigation. The GL Account Source field displays the Activity GL Account by default.

  4. In the Activity GL Account field, enter the GL account code combination to allocate the expense or revenue for claim investigations.

• AutoCash Rule Set: Update an AutoCash rule set for claims of non-invoice-related underpayments and overpayments:

  1. In the Manage AutoCash Rule Sets page, create or select the AutoCash rule set you want.

  2. In the Automatic Matching Rule section of the Edit AutoCash Rule Set page, select Claim Investigation in the Remaining Remittance Amount field.

     This creates claims during Lockbox processing for any remaining remittance amount of non-invoice-related underpayments and overpayments.

• Receipt Application Exception Rule: Update a receipt application exception rule for claims of invoice-related underpayments and overpayments.

  1. In the Mange Receipt Application Exception Rules page, create or select the application exception rule you want.

  2. In the Exception Rules section of the Edit Receipt Application Exception Rules page, create underpayment and overpayment conditions for invoice-related claims:

     1. Click the Plus (+) icon to create a condition.

     2. Select the Underpayment condition you want, and enter the Amount and Percentage.

     3. In the Action field, select Claim.

     4. Ensure that the User Review Required option isn't enabled for transaction claims.

     5. Repeat steps 1-4 for the Overpayment condition.

     Note: You must ensure that the application exception rule doesn't have overlapping or duplicate conditions.

• Receivables System Options: Update Receivables system options for the applicable business unit for claim investigations:

  1. In the Manage Receivables System Options page, select the system options record for the business unit you want.

  2. In the Edit System Options page, navigate to the Cash Processing tab.

  3. In the Cash Processing tabbed region:

     1. Enable the Enable channel revenue management integration option.

     2. Set the Lockbox Claim for Invalid Transaction Reference field to Negative Sign to create claims for receipts with invalid short pay (negative) transaction amounts and ignore receipts with invalid overpayment (positive) transaction amounts.

     3. In the AutoCash Rule Set field, select the AutoCash rule set that you defined above for non-invoice-related claim investigations.

     4. In the Application Exception Rule Set field of the Application Exception Rule section, select the application exception rule set that you defined above for invoice-related claims.

• Customer Profiles: Update the profiles of the applicable customer accounts and sites for claim investigations:

  1. In the Manage Customers page, search for and select the customer you want.

  2. Select the profile for the applicable account or site.

  3. In the Receipt Matching section of the Edit Profile page:

     1. In the AutoCash Rule Set field, select the AutoCash rule set that you defined for non-invoice-related claim investigations.

     2. In the Remainder Rule Set field, select the AutoCash rule set defined for non-invoice-related claim investigations to initiate the claim for any remaining receipt amount.

     3. In the Application Exception Rule Set field, select the application exception rule set that you defined above for invoice-related claims.

     4. Repeat these steps for each applicable account or site.

     Note: Lockbox uses the settings of the Match Receipts By rules for exact matches with Invoice transactions only. If the lockbox process can match receipts to invoices, then the process automatically applies the receipts and creates a claim for the remaining underpayment or overpayment. Lockbox doesn't automatically create claims for remittance reference recommendations for receipt application; you must manually create the claim investigation using the Edit Receipt page.

  4. Repeat these steps for each applicable customer.

• Receipt Method: Update the remittance bank account in the receipt class and method you will use for lockbox for the applicable business unit:

  1. In the Manage Receipt Classes and Methods page, search for and select the receipt class you want.

  2. In the Receipt Methods section of the Edit Receipt Class and Methods page, create or select the receipt method you want for lockbox receipts.

  3. In the Remittance Bank Accounts section, create or select the remittance bank account you want for the applicable business unit.

  4. In the GL Account section of the Edit Remittance Bank Account page, select in the Claim Investigation field the Claim Investigation receivables activity that you updated with the GL account code combination for the applicable business unit.

• Lockbox: Enable your lockbox for claim investigations:

  1. In the Manage Lockboxes page, create or select your lockbox.

  2. In the Match Receipts By section of the Create or Edit Lockbox page, enable the Create claims option.

Note: To process non-invoice related claims using Lockbox, you must ensure that AutoMatch and AutoApply are disabled in both Lockbox and Receivables System Options. This is necessary to prevent Lockbox from using remittance references as recommendations for receipt application, and instead creating a claim against the remittance references.

How Claims are Created and Settled for Lockbox Receipts

To initiate Channel Revenue Management claim investigations during lockbox processing:

1. Download the Receivables Standard Receipt Import FBDI template and prepare your data:

   1. Enter the required data for your lockbox.

   2. Enter the customer payments in the Record 6 - Payment and Record 4 - Overflow Payment tabs.

   3. Enter the customer reasons for the claims for the applicable payments in the Customer Reason columns.

   4. Enter any additional reference information related to the claims in the Customer Reference columns.

2. Navigate to the Scheduled Processes page and open the Process Receipts Through Lockbox process.

3. Enter the Lockbox data file and Lockbox number.

4. Set the Submit Validation parameter to Yes.

5. Set the Post Receipt with Invalid Transaction Reference as Unapplied parameter to Yes with Claim.

6. Set the Submit Post Receipts parameter to Yes.

7. Complete the remaining parameters according to your requirements and submit.

The lockbox process to initiate invoice-related claims includes these steps:

• After matching and applying a receipt to an invoice, initiate a claim for the underpayment or overpayment of the invoice amount.

• Use the Underpayment and Overpayment conditions in the Receipt Application Exception Rule for the claim.

• Use the business unit and currency of the invoice for the claim amount.

The lockbox process to initiate non-invoice-related claim investigations includes these steps:

• After applying a receipt to the open customer balance, initiate a claim investigation for the underpayment or overpayment amount.

• In the applicable customer profile, use the AutoCash rule set designated as the Remainder Rule Set with the Remaining Remittance Amount set to Claim Investigation to initiate the claim.

• Use the business unit and currency of the receipt for an overpayment claim. The remaining unapplied amount on the receipt is the claim amount.

• Claim Investigation Receivables activity type defined in the remittance bank account of the lockbox receipt method is used as the default activity for the claim investigation application to the imported receipt.

The processes related to the resolution and settlement of invoice-related and non-invoice-related claim investigations in Channel Revenue Management created during lockbox processing are the same as for claims created using the Edit Receipt page.

Note: External tax partner calculation services are currently not available for credit memo or invoice creation to settle claims in Channel Revenue Management.

You can review the details of the Channel Revenue Management deduction or overpayment claims in the Activity tab of the Receipt Details section of the Edit Receipt page.