Split Claims
Split claims enables you to split a claim into multiple separate claims and facilitates the process of research and settlement.
Splitting claims is enabled for manual clams, deductions, and overpayments. You can split claims only when the claim is in the Open status. You can create a maximum of a 100 splits. Split claims use the parent claim number, with the addition of a suffix as an identifier. When you split a claim, you can view the remaining amount and the split total assigned to the new claims. If you don't allocate the entire amount of the claim to the split claims, then the unassigned balance remains on the parent claim.
When you split a claim, you can:
- Settle a part of a claim, for example, a customer submits a claim for $50,000, but you can validate only $10,000. You can split this claim into two claims, validate and settle one of them, and leave the remaining claim open for further investigation.
- Facilitate the investigation of a claim caused by multiple reasons, for example, a customer submits a claim for $100,000 that's based on an audit of their records. After the initial investigation, you determine that this amount comprises of three earlier claims that the customer believes they never received payment for. To further investigate the claim, you can split it into three claims to investigate each reason separately.
- Settle only the valid portion a claim. For example, a customer may submit claims where only a part of the claim is valid. You can split such claims, verify, and settle the part you have verified. The other part of the claim may be left open for further investigation, or it may be charged back to the customer. For example, a customer submits a claim for a short shipment and to claim promotional discount. The promotional discount part is valid, but the short shipment part requires further investigation. You can split the claim into two claims, settle the one for the promotional discount, and leave the other claim open for further investigation.
The following table shows an example of how to split a claim with multiple reasons. You send an invoice to a customer for $200,000. You receive a check for $40,000 that includes a deduction for $160,000. However, the customer hasn't provided a reason for the deduction, hence, you can create a deduction using the reason Unknown.
After investigation, you determine that the customer has deducted $60,000 for promotions, $80,000 due to damages, and $20,000 due to duplicate billing. You can split the claim one in any of the following ways:
| Number | Status | Amount | Reason |
|---|---|---|---|
| DED2024 | Canceled | 0 | Unknown |
| DED2024_1 | Open | 60,000 | Promotions |
| DED2024_2 | Open | 80,000 | Damages |
| DED2024_3 | Open | 20,000 | Duplicate Billing |
| Number | Status | Amount | Reason |
|---|---|---|---|
| DED2024 | Open | 60,000 | Promotions |
| DED2024_1 | Open | 80,000 | Damages |
| DED2024_2 | Open | 20,000 | Duplicate Billing |
Each claim number uses the parent claim number, with the addition of a suffix as an identifier such as DED1_1 in the example above. Receivables uses this number for tracking.