Split Term Methods on Credit Memos

If you're crediting a transaction that has multiple installments, you must select a split term method.

The split term method determines how to credit a transaction with multiple installments and specifies how the installments are credited.

There are three split term methods:

• FIFO (First in First Out): This method reduces the remaining balance starting from the first installment.

• LIFO (Last In First Out): This method reduces the remaining balance starting from the last, or most recent, installment.

• Prorate: This method credits the installments and prorates them based on the amount remaining for each installment.

  This method uses the formula: Total Credit Amount * (Remaining Line Balance/Total Remaining Balance).