Wednesday, 29 August 2018

Difference between chargeback and adjustment in oracle receivables

Difference between chargeback and adjustment in oracle receivables


In this post, we will discuss about chargeback and adjustment in oracle receivables both these terms related to the Customer Invoices. In Adjustment we do some final adjustments to close the Customer Invoices but in the chargeback , We create another Invoices for the rest of the amount to customer as reference to the old customer Invoice. Here below is more detail description about difference between chargeback and adjustment in oracle receivables

In Receivables We create adjustments and chargebacks against transactions to which we are applying a receipt. We can create multiple chargebacks and adjustments against each transaction, for positive or negative amounts.

The major difference between adjustments and chargebacks is this, we create adjustments to write of the balances for an example We have raised a Customer Invoice of $50 but customer has only given the receipt of $49 and now we want to write off the remaining balance of $1 so we will create the adjustments to write off the remaining amount and close the debit item but in the chargeback we don’t write of the customer balances but create a new debit item for the pending balance to the customer again. For example, your customer sends payment of $75 for a $100 invoice. You can apply the receipt to the invoice, then create a chargeback for the balance due.

Difference between chargeback and adjustment in oracle receivables
 

1 comments:

Anonymous said...

I have a lot of customers that will pay specific invoices in full, and also take a debit memo that has yet to be determined. Currently, we are just short paying any invoice on the account until resolved, but no way of knowing what invoice (if any) that the debit memo is going to be tied to with an eventual credit. How can we pay the invoices in full as per the remittance, but also account for the debit memo in the same receipt?

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