Using Chargebacks Functionality

A chargeback is the amount a customer deducts from a payment for reasons including but not limited to damage, lateness, or improper packaging.

To use this functionality:

Establish Chargebacks and Chargebacks Deposit accounts on the Accounts Receivable Parameters form.
Define chargeback types on the Chargeback Types form. The types are the reasons why a customer might apply a chargeback.
Use the Chargebacks form to quickly enter chargeback data. You can specify the amount, choose the type, and approve the chargeback.
At this point you can either:

Record a payment on the A/R Payments form and on the A/R Payment Distributions form and then, while still on the A/R Payment Distributions form, click the Distribute Chargebacks button for the appropriate customer to populate the Chargeback Amount field with the amount to be distributed, or
Enter the payment amount on the A/R Quick Payment Application form and then click the Apply button to apply any chargebacks from the Chargebacks form.

Use the A/R Payment Posting form to post like you would for any other payments or distributions. For chargebacks that were approved on the Chargebacks form, the process on the A/R Payment Posting form creates and posts credit memos tied to an invoice for each chargeback amount, when the invoice is known, and creates and posts open credit memos not tied to an invoice for each chargeback amount, when the invoice is unknown. For those chargebacks not approved on the Chargebacks form, an open debit memo is created for each disapproved chargeback amount.