Channel Revenue Management Non-Invoice-Related Claim Investigations

Initiate non-invoice-related claim investigations in Channel Revenue Management from Receivables for underpayments and overpayments against the customer open balance.

Non-invoice-related underpayments can result from, for example, customer concerns about changes in payment due to pricing errors, transportation issues, or contractual failures.

You use the Create Claim Investigation window in the Edit Receipt page to create a claim investigation for the underpayment or overpayment recorded against the receipt that was applied to the transaction balance.

Settings That Affect Non-Invoice-Related Claim Investigations

These settings affect Channel Revenue Management non-invoice-related claim investigations 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.

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

• Application Reference Reason (APPLICATION_REF_REASON): If you want to define custom accounting rules based on the application reference reason, run the Create and Assign Subledger Sources process to make APPLICATION_REF_REASON available as a subledger application 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.

• 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.

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

How a Non-Invoice-Related Claim Investigation Is Initiated and Processed

When you receive payment from a customer that involves a short pay or overpayment against an open balance, you create and apply a receipt to the transaction and then initiate the claim investigation.

Note: You can initiate more than one non-invoice-related claim investigation on the same receipt, provided the sum of all claim investigation application amounts equals the receipt amount.

To initiate a non-invoice-related claim investigation:

1. In the Create Receipt page, create a standard receipt for the full transaction amount (for a short pay) or the full customer payment amount (for an overpayment).

2. In the Edit Receipt page, apply the receipt to the transaction.

   The Unapplied Amount field displays either a negative amount for a short pay or a positive amount for an overpayment.

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

4. Complete the fields in the Create Claim Investigation window:

   • In the Receivables Activity field, select a Claim Investigation receivables activity defined for the business unit of the receipt.

   • The Claim Amount field is populated with the unapplied receipt amount. If necessary, modify the amount to reflect the current user underpayment or overpayment.

   • 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 investigation:

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

• You can review the claim number and claim details in the Activity section of the Edit Receipt page. The claim investigation activity is an open or unresolved credit pending investigation.

• The claim investigation activity application is accounted using the account code combination defined in the Claim Investigation receivables activity.

Note: If you want to cancel an active claim investigation, you can either unapply the claim investigation activity or reverse the receipt. You can't cancel an active claim investigation in any of these Channel Revenue Management statuses: Approval Pending, Settlement Pending, Netting in Progress, or Settled.

When a claim investigation 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 related Receivables transaction according to the Channel Revenue Management settlement method:

   • For a short pay:

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

     • Applies an existing on-account credit memo belonging to the customer to the receipt to close the settlement amount; or

     • Applies a previous overpayment, or a combination of on-account credit memo and overpayment, 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.

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

3. Unapplies the claim investigation application on the receipt to the extent of the amount settled.

4. Applies the transaction created by the settlement process to the receipt.

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