How to Set Up Write-offs

Investigating deductions can be time intensive and often not cost effective for smaller deductions. By configuring thresholds at the business unit, customer, account, and bill-to site levels, automatic write offs can process eligible claims without any human intervention.

After claim investigation of a deduction or invoice deduction, a claim analyst with the correct privileges can manually write off any amount because it will go through approvals.

You must also configure receivables activity used in the creation of the receipt write-off or of write-off adjustment in AR. For invoice deductions, you settle as a write-off adjustment. For deductions, you settle as a receipt write-off.

Write-off Type	Thresholds	Approvals	Receivables Activity for Receipt Write Off	Receivables Activity for Write-Off Adjustment
Automatic	Set at: Business Unit - in Channel Settings Party - in Customer Trade Profile Account - in Customer Trade Profile Bill-to Site - in Customer Trade Profile	N/A	Set at: Business Unit - in Channel Settings	Set at: Business Unit - in Channel Settings
Manual (requires the claim analyst to have the privilege to do manual write offs)	N/A	Required	Set at: Business Unit - in Channel Settings Claim Type - in Manage Channel Claim Types	Set at: Business Unit - in Channel Settings Claim Type - in Manage Channel Claim Types

How to Configure Deduction Claims for Write-Off

You can configure deduction claims to be written off using the following settings:

• From the Manage Channel Settings page, set up the following at the business unit level:

  • Deduction Threshold
  • Receivables Activity for Receipt Write-offs
  • Receivables Activity for Write-off Adjustment
  • Write-off Reviewer
    Note: If you use Redwood, then this setting isn't applicable.

    If the claim amount is less than or same as the threshold amount, and a reviewer is selected, then this reviewer is assigned the claim, as the claim owner. The claim is created in the Open status.

    If the write-off reviewer isn't enabled, and the deduction amount is less than or same as the threshold amount, then the claim is created directly in the Settlement Pending status.

• From the Manage Claim Types page, you can set up a default receivables activity for receipt write-off and for write-off adjustment for a business unit and claim type when writing off customer claims. This mapping enables you to standardize write-off accounting for a set of claim types.

  If the receivables activity isn’t specified for the claim type, then the value is defaulted from the business unit.