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