Overview
In Oracle Receivables you can create a
chargeback against transactions to which you are applying a receipt. You can
create multiple chargebacks against each transaction, for positive or negative
amounts. Receivable’s lets you enter a chargeback against a credit memo or an
on-account credit memo only if they have a positive balance.
When performing the chargeback function,
Receivable’s uses the transaction type of the transaction you are adjusting to
validate the chargeback amount. If the Transaction Type does not allow over application
then you will not be able to enter an amount that will reverse the sign of the
transaction. Chargebacks do not follow the natural application rules and will
allow the adjustment of a transaction in either a positive or negative
direction regardless of the natural application flag.
You can use the chargeback functionality to create a new debit
item when closing an existing debit item. Receivable requires that you
automatically number your chargeback sequences by updating the Last Invoice
Number field for the chargeback Transaction Batch Source in the Transaction
Source Window. This will be covered within the setting up of the chargeback
functionality later within this document.
This post will
cover the following chargeback information:
Chargeback Functionality Setup
How to Manually Generate a Chargeback
Reversing a Chargeback
Viewing Chargeback
Accounting for Chargeback
Chargeback Table Information
Chargeback Troubleshooting
The following information must be setup prior to processing any
chargeback functionality. Oracle provides seeded values to allow you to perform
your initial testing of the application. Listed below are Profile and Seeded
Oracle Setup Sources and Transaction Types that can be used to perform this
functionality. If is recommended to use the seeded setup’s that are provided
for your initial testing before generating you own Batch Source, Transaction
Type.
1.
Profile: Chargeback Due Date
Enter the Chargeback Due Date profile that will be defaulted
when running the Chargeback Functionality. Select from the following Options:
a. Open Invoice Due Date – Use the due date of the invoice or
debit memo as the default.
b. Receipt Date – Use the receipt date as the default. This will
be the date receipt was entered.
c. Current Date – Today’s date.
d. Deposit Date – Use the receipt deposit date as the default.
Navigation: Setup>System>System Options
Tab: Miscellaneous
2.
Transaction Batch Source
Transaction Batch Sources controls the
transaction type they are assigned in determining whether Receivables
automatically numbers your transactions and transaction batches. As indicated
earlier within this document, Receivables requires that you check the Automatic
Transaction Numbering for the batch source that you are setting up. This will
allow the instance to automatically number the Chargebacks that are performed
using a sequence that is created during the initial creation of the batch
source.
Receivables has provided a seeded transaction batch source that
is used with the Chargeback Transaction Type that also seeded for your use or
testing purposes.
Navigation: Setup>Transactions>Sources
3.
Transaction Type: Chargeback
Transaction types are used to define the accounting for debit
memos, credit memos, on-account credits, chargebacks, commitments, invoices,
and bills receivable you create. They are also used to determine if balances
are posted to the General Ledger or whether the balances of the customers’
accounts are updated. Autoaccounting uses that gl accounts that are setup here
based on the AutoAccounting setup that is performed. Oracle has provided a
seeded Transaction Type: Chargeback to be used in the initial testing phase
that you are performing. Note that the creation sign for the seeded value has
positive sign and over application checked. If you want to have the transaction
that is generated be posted to general ledger, you will need to have the post
to GL flag checked. If you want to have the transaction that is generated
update with the customer balances for a chargeback transaction that has been
generated when you will need to have Open Receivables checked.
Navigation: Setup>Transactions>Transaction Types
Define receivables activities to default
accounting information for this Chargeback Adjustment and Chargeback Reversal
functionalities that will be talked about later within this document.
Activities that you define here appear as a List of Values (LOV) when
performing the various functionalities of the Chargeback Transaction
generation.
Query the Chargeback Adjustment that is a seeded value and
assign a General Ledger Code Combination that you want to use for this
functionality. Save the Receivables Activity after entering the CCID for this
activity. This activity is reserved for internal use only.
Query the Chargeback Reversal Activity that is a seeded value
and assign a General Ledger Code Combination that you want to use for this
functionality. Save the Receivables Activity after entering the CCID for this
activity. This activity is reserved for internal use only.
Note: Once a Receivable Activity is generated you can not change
its type. However, you can update an existing activity’s GL account, even if
you have already assigned this activity to a transaction.
Navigation: Setup>Receipts>Receivables Activities
View>Find
Select from LOV Chargeback Adjustment: Enter the GL account
that you setup within General Ledger View>Find
Select from LOV Chargeback Reversal: Enter the GL account that
you setup within General Ledger
5.
Receivable Lookups
Oracle provides seeded Adjustment Reasons that can be used when
generating Chargeback Adjustments. Should you want to add additional Adjustment
Reasons, perform the following.
Navigation:
Setup>System>Quickcodes>Receivables
a. Query the Lookup type ADJUST_REASON. This will indicate the
seeded values that come with the Oracle Application. You can add additional
adjustment reasons here if needed.
6. The Chargeback and Adjustment Button within the Receipts
Workbench under Applications From.
If these buttons are not available you will need to ensure that
the following profile is setup to allow the use of these buttons.
Responsibility: System Administrator
Navigation: Profile>System
a.
Enter the following to allow the access of
these buttons.
b. Query the following profile.
AR: Cash – Allow Actions
c.
Set this Profile to YES and Save.
Use chargebacks to create a new debit item
for your customer when closing an existing debit item. This allows an aged
debit item to be re-invoiced to a new debit item using the chargeback
adjustment receivables activity setup in prior setup steps above.
To manually generate a chargeback:
1. Navigate to the Receipts Workbench from the Receivable Responsibility
Navigate: Receipts>Receipts
2. Enter the following information into the Receipts>Receipts
form.
a.
Enter in a Receipt Number if you are using
a Manually Receipt Numbering Batch Source.
b.
Receipt Type should be CASH by default.
c.
Enter in the receipt amount. Example
100.00 USD
d.
Receipt Date and GL Date will default
based on the system date of entering in this receipt. These can be changed
based on your needs.
e.
Select a Payment Method. Example using the
Manual with Clearance which is a Seeded Payment Method type. This should give
you a Confirm Status for this receipt.
f.
Click on Customer Name and select Customer
that you would like to apply this receipt too. If you know the Debit Item
number (Transaction Number) you can also enter this instead of the Customer
Name. Hit the TAB key. This will fill in the Customer Number and Location for
this customer.
g.
Click on the Application Button that now
should be illuminated.
3. This will now open the Application Form within the Receipts
Workbench.
a.
Using the LOV that is found for the column
Apply To select an invoice that is greater than the amount that you are going
to apply. This will leave a Balance Due if you scroll across using the slide
bar.
b.
Save this transaction. This will now have
the save and apply check boxes both checked indicating that this has been
applied to this invoice.
4. In generating the Chargeback now on this invoice you will note
that both the Chargeback and Adjust button at the bottom of the Applications
Form are now illuminated. Perform the following steps in order to generate the
chargeback to this invoice.
a.
Click on the Chargeback Button at the
bottom of the Application Form for the invoice that you want to generated the
new Chargeback invoice for. This will put you into the Chargebacks form.
b.
Select under Type the transaction type for
this Chargeback. This transaction type should be of a Class of Chargeback. Oracle
provides a seeded value for the function so we will select, Chargeback
Transaction Type.
c.
The amount on the chargeback form should
match the amount of the invoice balance that you are generating this chargeback
for. Should you only want to generate for a partial amount of the transaction
you will be able to enter in a value here based on the Balance indicated in the
Zone above within this form.
d.
Note that the GL account is now shown for
the Chargeback function. This is the GL account for the Chargeback Adjustment
Receivables Activity that was performed in the setup steps above.
e.
Click on the Due Date. Note that this is
populated based on the setup that was performed within the
Setup>System>System Options setup that was performed in the setup steps above.
f.
Click on the MORE tab that is available
for additional entry. This is not required but does provide a place to enter
the reason that you are generating the Chargeback for the debit item.
g.
Select a reason from the LOV for this
Chargeback action.
h.
Enter any additional information within
the Comments section of the form.
i.
Click on the save icon above within the
Tool Bar.
5.
This will have generated a Chargeback
Number that is now the new debit item for the remaining balance that was
entered for this transaction. You will now be able to exit this form and the
debit item that was used to generate this Chargeback will now be closed and the
new debit Chargeback will be generated for the remaining balance of the invoice.
Reversing a Chargeback
Like other conditions, you may have generated a Chargeback and
want to reverse the Chargeback that was generated against an Invoice. Listed
below are the steps to reverse the Chargeback that was generated using the
receipts workbench.
To reverse a chargeback generated via the Receipts Workbench:
1.
Navigate to the Receipts window
(Receipts>Receipts or Receipts>Batches).
2.
Query the existing cash receipt.
3.
Choose the Applications button.
4.
Select the Transaction that the Chargeback
was generate against by clicking on the transaction.
5.
Click on the Chargeback Button.
6. This should bring up the Chargeback form within the Receipt
Workbench and indicate the Chargeback that you want to reverse. Perform the
following steps.
- Click
on the Chargeback that you want to reverse. Remember that you can have
multiple chargebacks for the same Debit Item
- Click
on the red ‘X’ within the Tool Bar that indicates Delete. This should
remove the Chargeback information that was generated for this debit item.
- When exiting from the form you will
be asked to save your changes. Click Yes.
- This will bring you back to the
Applications form within the Receipts Workbench.
- If you click on the adjustments
button for this debit item (Invoice) you will notice 2 adjustment rows
were generated for this debit item. One is the Chargeback Adjustment that
would have closed this debit item and generated the original Chargeback
and the other is a Chargeback Reversal Adjustment that reverses the
original and puts the Debit Item (Invoice) back to its original condition
prior to performing the Chargeback.
- You can verify the effects of the
Chargeback Reversal by Querying up the Chargeback that was originally
generated and see that it is now closed as well via the following
navigational steps. Collections>Account Details
Query on Class Chargeback and Status closed.
You will find the Chargeback that was generated is now closed.
7.
Save your work.
8.
See the Section on Viewing a Chargeback to
see how this was performed.
Listed below are the steps involved to view the original
invoice and the chargeback that was generated. We will also drill down and
indicate the adjustments below that were generated when the Chargeback was
generated and when the Chargeback was reversed.
To review the Original Debit Item where the Chargeback
Adjustment was Performed:
1.
Navigate to the Collections Workbench and
perform the follow to query the Original Invoice.
a. Navigation Steps: Collections>Account Details
b. Query the Debit Item (Invoice) that Chargeback was generated
against by entering in the invoice number under the Trans Num Column. NOTE: If
this debit item was closed by the Chargeback you will need to ensure that you
select Status Closed prior to Clicking on the Find button
c. This will bring up the original Debit Item. Click on the
Activities Button to show all activities that were generated against this Debit
Item.
d. Notice that prior to the Reversal there is one adjustment
generated against this debit item. This is the Chargeback Adjustment that was
setup in prior steps within the Setup Section of this paper.
e. If reversal was performed you will see two adjustments have
been performed. One will be the Chargeback Adjustment to close out the original
invoice and the other is the Chargeback Reversal to put the original Debit Item
back to its original state prior to performing the Chargeback.
To review Chargeback that was generated:
2. Navigate to the Collections Workbench and perform the follow to
query the Chargeback that was generated.
a. Navigation Steps: Collections>Account Details
b. Query the Chargeback that was generated against by entering the
Chargeback Number under the Trans Num Column. NOTE: If this Chargeback was
reversed by a Chargeback Reversal you will need to ensure that you select
Status Closed prior to Clicking on the Find button
c. This will bring up the original Chargeback. Click on the
Activities Button to show all activities that were generated against this Debit
Item.
d. Notice that prior to the Reversal there is no activities. This
is because the Chargeback is considered a new debit item and no adjustment rows
where generated. It is like a new invoices was generated but is linked to the
original invoice. If you click on Details Button for this Chargeback you will
get the Header Record of the Chargeback via the Transaction Workbench. By
clicking on the MORE tab you will see the Original Transaction Column that
indicates where this Chargeback was generated from.
e. If Chargeback reversal was performed you will see one
adjustment. The Chargeback Reversal Adjustment will close out this Chargeback
and reopen the Original Debit Item that the Chargeback was generated against.
Utilizing the release 11i application
functionalities you can view the accounting that was performed on the above
transactions with the following navigational steps. This will give you a detail
look at the Accounting that was performed for both the Original Debit Item and
the Chargeback that was generated including the drilling down to the chargeback
adjustment and chargeback adjustment reversal levels. Please follow the
following navigational steps to see both the Accounting and T-Accounts.
Original Invoice Accounting:
1. Original Invoice
Accounting:
a. Navigation Steps: Collections>Account Details
b. Enter the Original Invoice number in the Trans Num column and
click Find.
c. Click on Details for this Original Invoice.
d. Click within the Tool Bar
Tools>View Accounting
e. If you wish to see the T-Accounts for this Transaction click on
T-Accounts Button.
2. Original Invoice
Receipt Application Accounting
a. Navigation Steps: Collections>Account Details
b. Enter the Original Invoice number in the Trans Num column and
click Find.
c. Click on Activities for this Original Invoice.
d. Select the Receipt that was applied to the invoice.
e. Click on Details
f.
Click within the Tool Bar Tools>View Accounting
g. If you wish to see the T-Accounts for this Transaction click on
T-Accounts Button.
3. Original Invoice
Chargeback Adjustment Accounting
a. Navigation Steps: Collections>Account Details
b. Enter the Original Invoice number in the Trans Num column and
click Find.
c. Click on Activities for this Original Invoice.
d. Select the Chargeback Adjustment that was applied to the
invoice.
e. Click on Details
f.
Click within the Tool Bar Tools>View Accounting
g. If you wish to see the T-Accounts for this Transaction click on
T-Accounts Button.
4. Original Invoice
Chargeback Reversal Accounting
a. Navigation Steps: Collections>Account Details
b. Enter the Original Invoice number in the Trans Num column and
click Find.
c. Click on Activities for this Original Invoice.
d. Select the Chargeback Adjustment Reversal if this original invoice
had a Chargeback reversal performed
e. Click on Details
f.
Click within the Tool Bar Tools>View Accounting
g. If you wish to see the T-Accounts for this Transaction click on
T-Accounts Button.
1. Chargeback
Accounting:
a. Navigation Steps: Collections>Account Details
b. Enter the Chargeback number in the Trans Num column and click
Find.
c. Click on Details for this Chargeback.
d. Click within the Tool Bar
Tools>View Accounting
e. If you wish to see the T-Accounts for this Transaction click on
T-Accounts Button
2. Chargeback
Adjustment Reversal against the Chargeback:
a.
Navigation Steps: Collections>Account
Details
b.
Enter the Chargeback number in the Trans Num
column and click Find.
c.
Click on Activities for this Chargeback.
d.
Select the Chargeback Adjustment Reversal
for this Chargeback.
e.
Click within the Tool Bar Tools>View Accounting
f.
If you wish to see the T-Accounts for this
Transaction click on T-Accounts Button.
Chargeback: Table Information
Chargebacks when generated are stored like a regular invoice
within the Oracle Receivable’s Tables. What is important is the linking of the
Chargebacks that are generated to the Original invoice via the Chargeback
Adjustment and the Chargeback Reversal. Listed below are the tables and columns
that are effected and the columns that are important when a Chargeback is
Generated and when a Chargeback is Reversed.
-
AR_ADJUSTMENTS_ALL: One adjustment record
is created against the Original Invoice when the Chargeback is created. Listed
below are the relevant columns of the adjustment that indicates it is an
adjustment against the original invoice but is tied to a Chargeback Transaction
as well. One adjustment row is generated against the original invoice and the
Chargeback that was generated when a Chargeback Reversal is generated.
|
Adjustment_Number
|
Adjustment
Number generated from sequence
|
||
|
|
|
AR_ADJUSTMENT_NUMBER_S
|
|
|
Adjustment_Id
|
|
Adjustment
Identifier generated from sequence
|
|
|
|
|
AR_ADJUSTMENTS_S
|
|
|
Customer_Trx_Id
|
|
Identifier
of customer transaction associated with this adjustment
|
|
|
Postable
|
|
Indicates
whether this adjustment is postable – it should be null
|
|
|
|
|
valued to ‘Y’
|
|
|
Status
|
|
Approval_Type
indicated from AR_LOOKUPS with the
|
|
|
|
|
following
values :
|
|
|
|
|
A
|
Approved
|
|
|
|
M
|
More
Research
|
|
|
|
R
|
Rejected
|
|
|
|
U
|
Unaccrued
Charges
|
|
|
|
W
|
Waiting
Approval
|
|
Adjustment_Type
|
|
Invoice
– Manual for generated transactions for Chargebacks
|
|
|
Chargeback_Customer_Trx_Id
|
Identifier
of Chargeback Transaction associated by this
|
||
|
|
|
adjustment
|
|
|
Org_id
|
|
Operating
Unit Identifier
|
|
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