Channel Revenue Management Invoice-Related Channel Revenue Claims

Initiate invoice-related claims in Channel Revenue Management from Receivables for underpayments and overpayments of specific invoices.

A customer can underpay an invoice, for example, to claim an agreed upon discount or to dispute one or more items on the invoice.

You use the Create Channel Revenue Claim window in the Edit Receipt page to create a channel revenue claim for the underpayment or overpayment of an invoice application against a receipt.

Settings That Affect Invoice-Related Channel Revenue Claims

These settings affect Channel Revenue Management invoice-related claims in Receivables:

• 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.

• Receivables System Options: Enable channel revenue management integration in Receivables system options for the applicable business unit:

  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, enable the Enable channel revenue management integration option.

• Transaction types: Update or define transaction types to assign to invoices applied to the receipts that have claims against them. You must enable the Allow Overapplication option on these transaction types.

How an Invoice-Related Channel Revenue Claim Is Initiated and Processed

When you receive an underpayment from a customer for an invoice, you create a receipt for the payment amount and apply the receipt to the invoice. You then raise a dispute for the open receivable amount to initiate the claim.

An invoice-related claim takes the currency and business unit of the invoice. Only invoice applications against the receipt for the customer payment are eligible for an invoice-related Channel Revenue Management claim.

To initiate an invoice-related channel revenue claim:

1. In the Create Receipt page, create a standard receipt for the customer payment amount.

2. In the Edit Receipt page, apply the receipt to the customer invoice.

3. In the Application section of the Edit Receipt page, click the Actions menu and select Create Channel Revenue Claim.

4. Complete the fields in the Create Channel Revenue Claim window:

   • The Transaction Business Unit field is populated by default with the business unit of the invoice.

   • The Claim Amount field is populated by default with the amount outstanding on the invoice. You can't edit this amount.

   • In the Application Reference Reason field, select the applicable reference reason for this claim.

     Application reference reasons are defined in Channel Revenue Management.

   • In the Customer Reason field, enter the customer reason for the claim.

   • In the Customer Reference field, enter any additional reference information related to the claim.

5. Click OK.

6. Click Save to save the receipt.

When you save the receipt, this initiates the claim:

• Channel Revenue Management creates a deduction or overpayment claim and assigns a claim number to the receipt.

• The dispute amount on an underpayment--the amount outstanding on the invoice--is updated against the invoice for the claim amount.

• The claim number is displayed as the Application Reference Number in the Application tab of the Receipt Details section of the Edit Receipt page.

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

When a claim is resolved, the claim is settled in Channel Revenue Management by running the Settle Customer Claims process for the applicable business unit.

The Settle Customer Claims process performs these steps:

1. Creates the Receivables credit memo or invoice according to the Channel Revenue Management settlement method:

   • For an underpayment:

     • Creates an on-account credit memo for the settlement amount; or

     • Creates a standard credit memo to credit the invoice; or

     • Applies an existing on-account credit memo or previous overpayment, or a combination of the two, belonging to the customer to the receipt to close the settlement amount.

   • For an overpayment:

     • Creates an invoice against the claim; or

     • Applies existing deductions belonging to the customer to the overpayment amount.

2. During credit memo or invoice creation, Receivables calculates taxes according to the Oracle Tax setup on the amount passed from Channel Revenue Management as the settlement amount of the claim.

   The Create Automatic Receipt Write-offs process creates an adjustment to the invoice if the remaining amount on the claim after taxes is below the write-off threshold.

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

3. If the claim is settled other than by creating a standard credit memo to credit the invoice, the claims process:

   • Unapplies the invoice application on the receipt and reapplies the invoice application to the receipt for the original application amount plus the amount settled.

   • Applies the transaction created as the settlement document to the receipt.

4. The dispute on the invoice is removed to the extent of the settlement amount.

5. If this is only a partial settlement, a child claim is created for the open claim amount. The claim continues in Channel Revenue Management.