Invoice Credit Actions

You can apply credits to a released invoice to adjust the amount. To reduce the amount of an invoice, you can choose from the following types of crediting actions:

• Cancel an invoice.

• Write off an invoice.

• Apply a concession.

• Create a net invoice.

Canceling an Invoice

Canceling a released invoice results in the creation of a credit memo for the entire amount of the canceled invoice. Cancel an invoice only if the invoice is released and has no payments, adjustments, or crediting invoices applied to it. All items on the canceled invoice are returned to the unbilled transactions region of the invoice and are eligible for invoicing in the next billing cycle.

The application updates the funds consumed balance on the contract that funded the original invoice to reflect the returned consumed amount. The credit memo always has the same invoice currency and currency attributes as the original invoice.

When you cancel an invoice, the application only copies the invoice lines with amounts, from the original invoice to the new credit memo. The cancel operation is disabled for invoices without amounts.

Writing Off an Invoice

Write off all or part of a released invoice that you can't collect due to bad debts. Writing off an invoice creates a crediting invoice for the original invoice in the write-off amount that you enter. Write off at either the invoice level or the invoice line level. If you write off at the invoice level, the application prorates the write-off amount across the invoice lines. For invoice line level write-offs, specify the write-off amount for the line.

The write-off invoice always has the same invoice currency and currency attributes as the original invoice. The funds consumed are not returned to the contract line for future consumption when you write off an amount.

Applying a Concession

Apply a concession when you want to manually credit a released invoice without adjusting the transactions.

Apply a concession to either the invoice level or invoice line level by entering either an amount or percentage. If you apply the concession to the entire invoice, the application prorates the concession amount across all the invoice lines. For invoice line concessions, specify the concession amount or percentage for the line. When you apply the concession, you create a credit invoice for the original invoice in the entered amount.

Creating a Net Invoice

Enable net invoicing for your contract when you want to create a standard invoice that includes the amounts from adjusted transactions on one or more released invoices. A net invoice can include new transactions that are eligible for invoicing, along with the adjusted transactions from the same contract. If net invoicing is enabled for your contract, the application automatically consolidates credits with new invoices instead of issuing individual credit memos. A net invoice is not a credit memo and it uses the standard invoice type.

To create a net invoice that contains positive and negative amounts, the creation sign for the Oracle Receivables transaction type must be set to Any Sign.

When net invoicing is disabled:

• The application automatically creates a credit memo each time that you adjust and process the transactions on a released invoice.

• The credit memo reverses the invoice amount by the amount of the adjusting item.

• The invoice transaction currency of the credit memo is the same as the currency of the released invoice.