CHARGE BACK:

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

Receivables lets you enter a chargeback against a credit memo or an on-account credit if they have a
positive balance.

Receivables uses the transaction type of the transaction you are adjusting to validate the adjustment or
chargeback amount. If the transaction type does not allow over-application, you cannot enter an
amount that would reverse the sign of the balance of the debit item. Chargebacks and adjustments do
not follow the Natural Application rules; this lets you adjust transactions in either direction, regardless of
the Natural Application flag.

Chargeback setup:

1- Default charge back due date:

Task: Manage Receivables System Options

This is default due date for chargeback invoice and you still can manage it at create chargeback at
receipt level

2- Create transaction type:

 (Note): the natural application only is the available option with chargeback class
And allow adjustment posting the only available option because chargeback is a receivable
activity type is: adjustment

3- Manage charge back activities:

Task: Manage Receivables Activities

Oracle cloud provide two predefined receivables activities you have to define it
Search for: a) chargeback adjustment and configure the activity account
System will use this account for:

1- Create automatically adjustment at the original invoice to reduce the receivable and close it.

DR/Adjustment>>>chargeback activity account

CR/ Receivables>> from original invoice according to auto accounting rule

2- Create the chargeback invoice debit line.

DR/ Receivables>> from original invoice according to auto accounting rule
CR/Revenue>>> chargeback activity account
b) search for : chargeback reversal and cofigure the activity account

system use the account to reverse the effect the adjustment and invoice you create aginst the orginal
invoice.

Now, we will use the chargeback adjustment, our scenario that customer debit by standard AR invoice
At 1/10/21 the invoice amount is 100,000 due date is 2/9/21 at the due date the customer pay
75,000 we will close the original invoice and create chargeback invoice .

1- The original invoice

2- At receipt

Note:1- distribution : the debit account of the chargeback invoice> DR/receivable

3- You still can manage the due date of the chargeback whenever the settlement dealt.

4- The chargeback invoice:

Search for the chargeback no.

Note) : the revenue distribution of the chargeback invoice source : the chargeback adjustment account

5- the chargeback adjustment at the original invoice

search for the original invoice no , and from action panel: manage adjustment
Post to ledger:

I hope this help you, with my best wishes