Resolve Nonpromotional Claims

This table summarizes the resolution of claims in Channel Revenue Management.

Summary of Deductions and Settlement

Claim Source	Settlement Method	Apply Open Transactions	Settlement in Receivables
Deduction	Credit Memo - On Account with item lines with memo lines with non-item based line (description only) optionally tax inclusive Manual Write-off Auto Write-off	Open credit memos Open overpayments	Receivables Transactions: Credit Memo: Integrated with Receivables for tax calculation for credit memos. Receipt Write-off: Any remaining unsettled amount which is below the set threshold is written off. Applies receivables transaction to AR Receipt. Split remaining amount to child claims if above the write-off threshold.
Deduction	Settle multiple related claims to: Credit Memo - On Account Manual Write-off	Open credit memos Open overpayments	Receivables Transactions: Credit Memo: Integrated with Receivables for tax calculation for credit memos. Receipt Write-off: Any remaining unsettled amount which is below the set threshold is written off. Applies receivables transaction to AR Receipt. Split remaining amount to child claims if above the write-off threshold.
Overpayment	Invoice with item lines with memo lines with non-item based line (description only) Driven by invoice setup: Claim type mapped to Receivables invoice transaction type.	Open deductions	Receivables Transactions: Invoices: Integrated with Receivables for tax calculation for invoices. Applies receivables transaction to Receivables receipt. Split remaining amount to child claims.
Invoice Deduction	Credit Memo - On Invoice with item lines with memo lines with non item based line (description only) Credit Memo - On Account with item lines with memo lines with non item based line (description only) optionally tax inclusive Manual Write-off Auto Write-off Chargeback	Open credit memos Open overpayments	Receivables Transactions: Credit Memo Write-off Adjustment Receipt Write-off Applies receivables transaction to Receivables Receipt. Split remaining amount to child claims. Use the chargeback settlement method to close the original invoice that has been partially paid, and create a chargeback for the remaining amount. This settlement method is used to settle invalid invoice deductions. Chargebacks can't be combined with other settlement methods.
Invoice Deduction	Settle multiple related claims to: Credit Memo - On Invoice Manual Write-offs	Open credit memos Open overpayments	Integrated with Receivables for tax calculation for: Credit Memo Write-off Adjustment Receipt Write-off Applies receivables transaction to Receivables Receipt. Split remaining amount to child claims.
Invoice Overpayment	Invoice with item lines with memo lines with non item based line (description only)	Open Deductions	Integrated with Receivables for tax calculation for invoices. Applies receivables transaction to Receivables Receipt. Split remaining amount to child claims.
Manual Claim	Credit Memo - On Account with item lines with memo lines with non-item based line (description only) Driven by credit memo setup: Claim type mapped to Receivables credit memo transaction type Claim reason mapped to Receivables credit memo reason	N/A	Integrated with Receivables for tax calculation for credit memos. Any remaining unsettled amount which is below the set threshold is auto written off. Split remaining amount to child claims.
Manual Claim	Settle multiple related claims to: Credit Memo - On Account	N/A	Integrated with Receivables for tax calculation for credit memos. Any remaining unsettled amount which is below the set threshold is written off. Split remaining amount to child claims.

You can search for and review open claims, and decide on the appropriate resolution prior to approval.

1. From the Navigator, click Deductions and Settlement under Order Management.

2. On the Manage Claims page, search and select the open claim that you want to resolve.

3. The Claim page opens. Click the Resolution tab.

Note: The open deductions and open overpayments available to you for settlement will be from the same BU and currency as the claim.

Deductions

Multiple settlement methods can be used to resolve a deduction:

Settlement Method	Steps
Credit Memo - On Account	In the Credit Memo section: Select the settlement method as Credit Memo - On Account. Note: The settlement method is selected by default if it's configured in the claim source setup. Enter the details of the credit memo that you're creating against the deduction. Enter the amount for the credit memo. If you select an item, the last invoiced price of the item is displayed under Amount. If you directly enter the amount, then the quantity is populated as 1, and the unit price becomes the amount you entered. In the Credit Memo: Details section, select a Transaction Type. Note: The transaction type is selected by default if it's configured in the claim type setup. Enter these remaining fields, if required. Reason: The credit memo reason to be used when the credit memo is created in Receivables. Override Transaction Date: Date to be used as the Receivables transaction date for the credit memo. Accounting Date: Accounting date for the claim. Click Save. If the amount selected for the credit memo is less than the deduction amount: A new child deduction is created after the Settle Customer Claims process completes, with the remaining amount. A new claim investigation line is added with this amount to the receipt.
Manual Write-Off	From the Actions menu, select Submit Write-Off. By default, the Submit Write-Off dialog box displays the receivable activity configured in the claim type setup. You can select any other receivable activity as required. Click Submit to write-off the claim. Note: You can't combine manual write-offs with any other settlement method. Manual write-offs apply to the entire claim amount.
Open Credit Memo	In the Apply Others section: Select Open Credit Memo as the settlement method. From the Open Transaction Number list, select the existing credit memo that you want to apply on the deduction. Enter the amount. Click Save. If the amount selected is less than the deduction amount: A new child deduction is created after the Settle Customer Claims process completes, with the remaining amount. A new claim investigation line is added with this amount to the receipt.
Open Overpayment	In the Apply Others section: Select Open Overpayment as the settlement method. The overpayment can be invoice or non-invoice related. From the Open Transaction Number list, select the existing overpayment that you want to apply on the deduction. Enter the amount. Click Save. If the amount selected is less than the deduction amount: A new child deduction is created after the Settle Customer Claims process completes, with the remaining amount. A new claim investigation line is added with this amount to the receipt. If the overpayment amount used in the deduction for settlement is less than the total value of the overpayment: A new child overpayment claim is created after the Settle Customer Claims process completes, with the remaining amount. For a non-invoice related overpayment, a new claim investigation line is added with this amount to the receipt that initiated the overpayment claim. For invoice related overpayment, the overpayment invoice gets applied on the overpayment receipt with the updated amount.

Invoice Deductions

Multiple settlement methods can be used to resolve an invoice deduction.

Settlement Method	Steps
Credit Memo - On Account	In the Credit Memo section: Select the settlement method as Credit Memo - On Account. Note: The settlement method is selected by default if it's configured in the claim source setup. Select a line type from the Type list. Item: Select an item from the list. Memo Line: Select a memo line from the list. <Blank>: Select a description from the list. Enter the remaining details of the credit memo that you're creating against the deduction. Enter the amount for the credit memo. If you select an item, the last invoiced price of the item is displayed under Amount. If you directly enter the amount, then the quantity is populated as 1, and the unit price becomes the amount you entered. In the Credit Memo: Details section, select a Transaction Type. Note: The transaction type is selected by default if it's configured in the claim type setup. Enter these remaining fields, if required. Reason: The credit memo reason to be used when the credit memo is created in Receivables. Override Transaction Date: Date to be used as the Receivables transaction date for the credit memo. Accounting Date: Accounting date for the claim. Click Save. If the amount selected for the credit memo is less than the deduction amount, a new child deduction is created for the latest invoice dispute amount after the Settle Customer Claims process completes.
Credit Memo - On Invoice	In the Credit Memo section: Select the settlement method as Credit Memo - On Invoice. Note: The settlement method is selected by default if it's configured in the claim source setup. Select a line type from the Type list. Item: Select an item from the list. Memo Line: Select a memo line from the list. Tax: To select tax, the source invoice should have a tax component. Freight: To select freight, the source invoice should have a freight component. <Blank>: Select a description from the list. Enter the remaining details of the credit memo that you're creating against the deduction. Enter the amount for the credit memo. If you select an item, the last invoiced price of the item is displayed under Amount. If you directly enter the amount, then the quantity is populated as 1, and the unit price becomes the amount you entered. If you selected tax or freight, the pending tax or freight amount from the source invoice is displayed under Amount. In the Credit Memo: Details section, select a Transaction Type. Note: The transaction type is selected by default if it's configured in the claim type setup. Enter these remaining fields, if required. Override Transaction Date: Date to be used as the Receivables transaction date for the credit memo. Accounting Date: Accounting date for the claim. Click Save. If the amount selected for the credit memo is less than the deduction amount, a new child deduction is created for the latest invoice dispute amount after the Settle Customer Claims process completes.
Manual Write-off	From the Actions menu, select Submit Write-Off. By default, the Submit Write-Off dialog box displays the receivable activity configured in the claim type setup. You can select any other receivable activity as required. Click Submit to write-off the claim. Note: You can't combine manual write-offs with any other settlement method. Manual write-offs apply to the entire claim amount.
Chargeback	From the Actions menu, select Submit Chargeback. By default, the Submit Chargeback dialog box displays the transaction type and reason based on the configuration in the claim type and claim reason settings. You can change these values as required. Click Submit to initiate the chargeback. Note: You can't combine chargebacks with any other settlement method. Chargebacks apply to the entire claim amount.
Open Credit Memo	In the Apply Others section: Select Open Credit Memo as the settlement method. From the Open Transaction Number list, select the existing credit memo that you want to apply on the deduction. Enter the amount. Click Save. If the amount selected is less than the deduction amount, a new child deduction is created after the Settle Customer Claims process completes, with the remaining amount.
Open Overpayment	In the Apply Others section: Select Open Overpayment as the settlement method. The overpayment can be invoice or non-invoice related. From the Open Transaction Number list, select the existing overpayment that you want to apply on the deduction. Enter the amount. Click Save. If the amount selected is less than the deduction amount, a new child deduction is created after the Settle Customer Claims process completes, with the remaining amount. If the overpayment amount used in the deduction for settlement is less than the total value of the overpayment: A new child overpayment claim is created after the Settle Customer Claims process completes, with the remaining amount. For a non-invoice related overpayment, a new claim investigation line is added with this amount to the receipt that initiated the overpayment claim. For invoice related overpayment, the overpayment invoice gets applied on the overpayment receipt with the updated amount.

Overpayments and Invoice Overpayments

An overpayment can be either invoice related, or non-invoice related. Multiple settlement methods can be used to resolve an overpayment claim:

Settlement Method	Steps
Invoice	In the Invoice section: Select the settlement method as Invoice. Enter the details of the invoice that you're raising against the overpayment. Enter the amount. In the Invoice: Details section, select a Transaction Type. Enter these remaining fields, if required. Override Transaction Date: Date to be used as the Receivables transaction date for the credit memo. Accounting Date: Accounting date for the claim. Click Save. If the amount selected for the invoice is less than the total overpayment amount: A new child overpayment is created after the Settle Customer Claims process completes, for the remaining amount. For a non-invoice related overpayment, a new claim investigation line is added with this amount to the receipt. For invoice related overpayment, the overpayment invoice gets applied on the overpayment receipt with the updated amount.
Open Deduction	In the Apply Others section: Select Open Deduction as the settlement method. The deduction can be invoice or non-invoice related. From the Open Transaction Number list, select the existing deduction that you want to apply on the overpayment. Enter the amount. Click Save. If the amount selected is less than the overpayment amount: A new child overpayment is created after the Settle Customer Claims process completes, with the remaining amount. For a non-invoice related overpayment, a new claim investigation line is added with this amount to the receipt. For invoice related overpayment, the overpayment invoice gets applied on the overpayment receipt with the updated amount. If the deduction amount used for settlement is less than the total value of the deduction, A new child deduction claim is created after the Settle Customer Claims process completes, with the remaining amount. For a non-invoice related deduction, a new claim investigation line is added with this amount to the receipt that initiated the deduction claim. For invoice related deduction, the deduction invoice gets applied on the deduction receipt with the updated amount.

Manual Claims

Settlement Method

Steps

Credit Memo - On Account

In the Credit Memo section: Select the settlement method as Credit Memo - On Account. Note: The settlement method is selected by default if it's configured in the claim source setup. Enter the details of the credit memo that you're creating against the deduction. Enter the amount for the credit memo. If you select an item, the last invoiced price of the item is displayed under Amount. If you directly enter the amount, then the quantity is populated as 1, and the unit price becomes the amount you entered. In the Credit Memo: Details section, select a Transaction Type. Note: The transaction type is selected by default if it's configured in the claim type setup. Enter these remaining fields, if required. Reason: The credit memo reason to be used when the credit memo is created in Receivables. Salesperson: The salesperson associated with the claim. Override Transaction Date: Date to be used as the Receivables transaction date for the credit memo. Accounting Date: Accounting date for the claim. Click Save. If the amount selected for the credit memo is less than the claim amount, a new child claim is created for the remaining amount after the Settle Customer Claims process completes.

Multiple Settlement Methods

You can settle individual deduction and overpayment claims using multiple settlement methods.