Resolve Nonpromotional Claims

Here you'll learn how to resolve nonpromotional claims.

Claim Source	Settlement Method	Apply Open Transactions	Settlement in Recievables
Deduction	Credit Memo - On Account (Nonpromotional) with item lines with memo lines with non-item based line (description only) optionally tax inclusive 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 (Nonpromotional) with item lines with memo lines with non item based line (description only) Credit Memo - On Account (Nonpromotional) with item lines with memo lines with non item based line (description only) optionally tax inclusive Chargeback Manual Write-off Auto Write-off	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 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 (Nonpromotional) with item lines with memo lines with non-item based line (description only) Custom Settlement Method	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.

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 or Customer Channel Management under Order Management.
2. On the Claims page, search and select the open claim that you want to resolve.

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	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 directly enter the amount, then the quantity is populated as 1, and the unit price becomes the amount you entered. The credit memo transaction configured in the claim type setup is used while creating the credit memo in Receivables. Enter these 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. Claim Includes Tax: By default, the application calculates taxes as inclusive or exclusive based on your tax configuration. Alternatively, you can select Yes to include all taxes in the line amount. If you do this, then Oracle Fusion Tax calculates all taxes as inclusive taxes overriding the tax configuration. Transaction Salesperson: Select the name of the salesperson for the transaction. 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.
Open Credit Memo	Select Open Credit Memo as the settlement method. In the Apply open transactions section, enter the following: 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. In the Apply open transactions section, enter the following: 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	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. Description: 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 directly enter the amount, then the quantity is populated as 1, and the unit price becomes the amount you entered. The transaction type configured in the claim type setup is used during instrument creation. Enter these 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. Claim Includes Tax: By default, the application calculates taxes as inclusive or exclusive based on your tax configuration. Alternatively, you can select Yes to include all taxes in the line amount. If you do this, then Oracle Fusion Tax calculates all taxes as inclusive taxes overriding the tax configuration. 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	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. Description: 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 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. The transaction type configured in the claim type setup is used during the instrument creation. Enter the Accounting Date if required. This is the 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.
Chargeback	Select Chargeback as the Settlement Method. By default, the transaction type and reason displays values 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	Select Open Credit Memo as the settlement method. In the Apply open transactions section, enter the following: 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	Select Open Overpayment as the settlement method. The overpayment can be invoice or non-invoice related. In the Apply open transactions section, enter the following: 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. 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	Select Invoice as the settlement method. Enter the details of the invoice that you're raising against the overpayment. Enter the amount. Enter these fields, if required. Override Transaction Date: Date to be used as the Receivables transaction date for the credit memo. Transaction Salesperson: Enter the name of the salesperson for the transaction. 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	Select Open Deduction as the settlement method. The deduction can be invoice or non-invoice related. In the Apply open transactions section, enter the following: 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	Select the settlement method 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 directly enter the amount, then the quantity is populated as 1, and the unit price becomes the amount you entered. The transaction type configured in the claim type setup is used for creating invoice in receivables. Enter these 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. Claim Includes Tax: By default, the application calculates taxes as inclusive or exclusive based on your tax configuration. Alternatively, you can select Yes to include all taxes in the line amount. If you do this, then Oracle Fusion Tax calculates all taxes as inclusive taxes overriding the tax configuration. Transaction Salesperson: Select the name of the salesperson for the transaction. 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.
Custom Settlement Method	Select the configured custom settlement. Note: If the settlement method is configured in the claim source setup and the Default check box is selected, then the settlement method is displayed by default. If the selected custom settlement is linked to Payables in the claim source setup, then optionally select the Supplier and Supplier Site details. The Supplier and Supplier Site details are defaulted if they are configured in the customer trade profile. Enter these fields for the custom settlement method, if required : Override Transaction Date: Date to be used as the transaction date for the settlement method. Accounting Date: Accounting date for the claim. Transaction Salesperson: Select the name of the salesperson for the transaction. This field is available only if the custom settlement is linked to Receivables in the claim source setup. Claim Amount Includes Tax: This is available only if the custom settlement is linked to Receivables in the claim source setup and it’s a non-promotional settlement. If it’s a non-promotional settlement, then select a line type from the Type list: Item: Select an item from the list. Description: Select a description from the list. Memo Line: Select a memo line from the list. This is available only if the custom settlement is linked to Receivables in the claim source setup. Enter the Quantity and Unit Price or the Amount. If it’s a promotional settlement: Enter the amount to associate and click Associate. Click Save.

Multiple Settlement Methods

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