Settle Customer Claims

After you submit a claim, it moves into the settlement pending status. These claims can now be settled using the Settle Customer Claims process.

• Oracle Fusion Tax calculates and applies any applicable taxes, as part of the settlement process for credit memos and invoices. Taxes aren't applicable to settlement methods from the Apply Others section.

• If there is any unsettled amount remaining in the claim which is below the write-off threshold, the write-off amount is applied to the receipt or adjusted on the invoice.

• If there is any unsettled amount remaining and no write-off is applicable, then the remaining amount is automatically moved to a child claim.

• The claim is updated to the Settled status.

Confirmation of Settlement in Claim

After the process completes, the claim summary is updated to reflect the actual settlement and the Confirmation tab becomes available for the claim. The claim summary shows the credit memos or invoices inclusive of tax and write-offs, if found to be applicable during settlement. The Confirmation tab gives the details of the settlement from Receivables.

• If a child claim was generated, the child claim number and amount is displayed at the top of the Confirmation tab.

• You can see the user entered resolution details on the left side of the table.

• The right side gives the details of the settlement. This can be different from what you submitted because of taxes or write-offs.

• You can drill down directly to the settlement documents in Receivables through the quick links on the credit memo or invoice.

Automatic Settlement in Receivables

The Settle Customer Claims process performs the automated creation of the resolution artifacts in Receivables, and applies them to the appropriate receipts and invoices. These credit memos, invoices, and chargebacks will have the transaction source as Channel Revenue Management. Settlement is available through the Application tab of the receipt. A full audit trail to document the life cycle of the claim is available through the Activity tab of the receipt. Invoice related artifacts like credit memos on invoice or invoice-specific write-offs are available through the Transaction Activities of the invoice.

Settlement of Claim Investigation

1. A credit memo, invoice, or chargeback is created in Receivables and applied on the receipt, if part of the resolution.

2. Any open credit memos or open overpayments are applied to the receipt, if part of resolution.

3. For a deduction claim, if the settlement amount is less than the claim amount, a new claim investigation line is applied on the receipt for the balance amount. This will have the child deduction number.

   For an overpayment claim, if the settlement amount is more than the claim amount, a new claim investigation line is applied on the receipt for the balance amount. This will have the child overpayment number.

4. Write-offs are created as Receipt Write-Offs, if applicable.

5. The original claim investigation line is unapplied from the receipt.

Settlement of Channel Revenue Claim

1. A credit memo or invoice is created in Receivables and applied on the receipt, if part of the resolution.

2. Any open credit memos or open overpayments are applied to the receipt, if part of resolution.

3. The original invoice application line (with a channel revenue claim) on the receipt is unapplied.

4. The dispute amount on the invoice is updated based on the settlement amount.

5. The invoice is applied on the on receipt with the updated amount.

6. Write-offs are created as Write-Off Adjustments, if applicable.