Manage deductions in the deduction workbench
Important
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Applies To: Microsoft Dynamics AX 2012 R3
This topic describes how to use the deduction workbench to process customer payments that include deductions.
A customer who is owed a rebate can decide not to wait for a rebate payout. Instead, the customer can send a payment that includes a deduction for the amount of the rebate. To handle this type of transaction, you can use the deduction workbench to match deductions to open credit transactions, split deductions, deny deductions, and write off deductions.
Before you can use the workbench, you must complete the setup tasks that are described in Set up deduction management. You should also have some type of rebate agreement set up for the customer: either a customer rebate, as described in Setting up and maintaining customer rebates, or a trade allowance rebate, as described in Set up billback rebates.
Prerequisites
The following table shows the prerequisites that must be in place before you start.
Category |
Prerequisite |
|---|---|
Required setup and processing tasks |
If you are applying a deduction to a customer rebate:
If you are applying a deduction to a trade allowance rebate:
|
1. Create a deduction journal entry
Enter the deduction information into the payment journal.
To create a deduction journal entry, follow these steps.
Click Accounts receivable > Journals > Payments > Payment journal.
Click New, and then, in the Name field, select the name of the deduction journal.
On the Action Pane, click Lines.
Enter the date, company account, and customer account number. In the Invoice field, select the invoice that the deduction is associated with.
In the Credit field, enter the amount that the customer paid. Click OK to confirm that the amount is less than the total of the marked transaction.
Select the offset account type and the offset account.
On the Action Pane, click >>, and then click Deductions. In the Deduction form, click New.
The Deduction ID field is populated automatically. Select the deduction type in the list.
In the Amount field, enter the amount that is displayed in the Balance field above the deduction list. This amount represents the amount that the customer deducted from the payment.
Close the Deduction form. In the Journal voucher form, a new line is displayed for the deduction.
On the Action Pane, click Validate, and then select Validate. You should receive the following message: "Journal is OK."
On the Action Pane, click Post, and then select Post.
2. (If required) Create a credit note for the customer
Next, if an approved rebate exists for the customer, create a credit note on the customer's account to represent the rebate. The credit then appears in the deduction workbench, where it can be matched to a deduction.
To create a credit note, follow these steps.
Click Sales and marketing > Common > Customers > All customers.
Select the customer, and then, on the Collect tab, in the Settle group, click Settle open transactions.
Select the transaction that the rebate was applied to. On the Action Pane, click Functions, and then select the type of rebate program that applies.
On the Overview tab, select the Mark check box next to the rebate ID. Click Functions, and then click Create credit note.
3. Process a deduction in the deduction workbench
In the deduction workbench, you can match deductions to open credit transactions, split deductions, deny deductions, and write off deductions.
To process a deduction in the deduction workbench, follow these steps.
Click Trade allowance management > Common > Deduction workbench.
Select the Mark check box next to the deduction to process.
Depending on how you want to process the deduction, complete one or more of the following procedures:
To match the deduction to a credit:
In the Open transactions area, select the Mark check box for the credit to match to the deduction. If multiple credits are listed, you can select more than one credit to match to the deduction.
–or–
If you want the system to automatically select credits that match the amount of the deduction, click Select deduction amount.
On the Action Pane, in the Maintain group, click Match. The system matches the deduction to the credit. If a balance remains in the deduction, this balance appears in the Remaining amount field on the Deductions tab.
To split the deduction:
On the Action Pane, in the Maintain group, click Split.
In the Split amount field, enter the amount to split from the main deduction. Click OK at the top of the Split form and then close the form.
On the Deductions tab, notice that a new record appears for the split amount. The original deduction record contains the remainder of the deduction balance. You can now manage the two parts of the original rebate separately.
Select the original deduction record, and then click the References tab. The Split amount field shows the amount that was split off from the original amount.
To deny the deduction:
On the Action Pane, in the Maintain group, click Deny.
Select the reason code for the denial. Click OK at the top of the Deny form and then close the form.
In the Show field below the Action Pane, select Closed. The denied deduction is displayed on the Deductions tab, and the remaining amount for the deduction is set to 0.00.
Optional: To reverse the denial, select the deduction record, and then, on the Action Pane, in the Reverse group, click Reverse denial.
To write off the deduction:
On the Action Pane, in the Maintain group, click Write-off.
Select the reason code for the write-off. Click OK at the top of the Write-off form and then close the form.
In the Show field, select Closed. The written-off deduction is displayed on the Deductions tab, and the remaining amount for the deduction is set to 0.00.
Optional: To reverse the write-off, select the deduction record, and then, on the Action Pane, in the Reverse group, click Reverse write-off.
You can combine these procedures. For example, you can split a deduction into two parts, and then match one part to a credit but leave the remaining part in the workbench to be matched to another credit later. You can also can match a deduction to a credit that is smaller than the deduction amount, and then deny or write off the remaining balance of the deduction.
4. Optional: Create an end-of-period promotion
Sometimes, you might not have an approved rebate that you can match to a deduction. In this case, you can use the End of period promotion feature to match the deduction to a trade allowance that is associated with the customer. The End of period promotion feature creates a new trade allowance agreement and a lump sum merchandising event. The feature then matches the lump sum to the deduction and makes the postings that are required to close the deduction.
This feature is useful if you use trade allowances. For more information about trade allowances, see Working with Trade allowance management.
First, you must set up a template to use to create the new trade allowance agreement. To set up a template, follow these steps.
Click Trade allowance management > Periodic > Templates.
On the Action Pane, in the New group, click Templates.
Fill in the fields with the information that should appear in the agreements that are created from the template. For more information about the fields in a trade allowance agreement, see Set up a trade allowance template.
On the Customers FastTab, in the Hierarchy field, select a hierarchy level. In the hierarchy list, select the customer who has an unmatched deduction, and then click >. The customer is added to the Trade allowance agreement customers list.
Continue to fill in the remaining fields as you require, and then close the form.
Click Trade allowance management > Setup > Trade allowance management parameters.
On the General FastTab, in the End of period template field, select the name of the template to use to create end-of-period promotions.
Next, you can create an end-of-period promotion in the deduction workbench. To create an end-of-period promotion, follow these steps.
Click Trade allowance management > Common > Deduction workbench.
Select the Mark check box next to the deduction to process.
On the Action Pane, in the Maintain group, click End of period promotion.
Optional: If you want to associate the deduction with one or more funds, follow these steps:
Click New, and then, in the Fund ID field, select a fund ID. Repeat this step to add as many funds as you require.
In the Percent field next to each fund ID, enter the percentage of the deduction to allocate to the fund. The amounts that you enter in the Percent fields must total 100 percent.
On the Action Pane, click OK. The system creates a new trade allowance agreement that has a lump sum merchandising event and matches the lump sum to the deduction.
5. Optional: Perform a mass update of deductions
If you have to make the same change to multiple deductions, you can select those deductions and perform a mass update of their fields.
To perform a mass update, follow these steps.
Click Trade allowance management > Common > Deduction workbench.
In the Show field below the Action Pane, select the type of deductions to view (Created, Open, or Closed).
Select the Mark check box next to each deduction to update. On the Action Pane, in the Maintain group, click Mass update.
The selected deductions are listed in the Mass update form. Update the fields as you require, and then click OK at the top of the form to accept the changes.
Related tasks
Technical information for system administrators
If you don't have access to the pages that are used to complete this task, contact your system administrator and provide the information that is shown in the following table.
Category |
Prerequisite |
|---|---|
Configuration keys |
Trade allowance management configuration key Rebates configuration key (if you are using customer rebates) |
Security roles |
Collections manager |