Reason codes determine the default type and subtype for claims and how claims are resolved.

You can create a reason code that automatically generates and closes claims with balances less than a specified amount. For example, you enter $5 in the Deduction Amount field during the application process for customer receipts, and enter a reason code that automatically settles or resolves customer invoice deductions that are less than $20. When you save the customer receipt, the $5 claim is automatically generated and closed.

You can customize Kenandy so that the reason code automatically populates the claim type field to a value of Write Off. You can also enter a reason code (with Type field value of Resolution) to specify how claims are resolved. For example, the reason code determines the segmented chart of accounts to which to automatically apply the claim.

You can write off part or all of a claim against an invoice by clicking the Write Off button for the claim. Writing off a claim enables you to effectively settle the claim without adjusting the customer invoice. Typically, you determine the segmented chart of accounts that is affected from the resolution code. The claim is charged against this GL segment, and the customer invoice type changes to Settlement.

You can settle each claim line against a specific resolution code.

Enter a negative quantity or negative unit amount so that the total amount is a negative number. The Claim Balance field must be zero. The Claim Balance field is the Amount field for the claim less the sum of the values in the Total Amount field for the lines in the claim. For example, if the claim amount is $222, then the total amount of all claim lines must be $-222.

When you resolve the claim, a customer invoice for $-222 with a Settlement type and a status of Closed is automatically created. The original claim status changes to Closed. Resolution codes are populated from the claim on the applicable invoice lines. A claim must have a settlement method in order to close.

You cannot write off a claim that you manually create.

You can charge back a claim to decline part or all of the claim and request repayment from the customer. When you click the Chargeback button for the claim, the claim status changes to Closed, and a new customer invoice (with an invoice type of Chargeback) for the amount of the outstanding claim balance is automatically generated. The invoice remains open until you receive the payment from the customer.

You cannot charge back a claim that you manually create.

You can settle a manual claim using the Refund Credit process when the customer has allowance accruals or overpayments credited to their account. Allowance accruals are credits that were awarded to a customer.

A prerequisite for settling a claim with a refund credit is a predefined bank account. To learn more, see Bank Accounts.

The claim customer and the customer credited with the allowance accruals must be the same because only matching customer accrual credits represented by customer invoice lines are available for settling a claim. Customer invoices with an allowance accrual type are credited to the bill-to customer.

You can investigate any claim to see if there are credits for allowance accruals that you can use to settle that claim. You do not actually settle and create the refund until you click the Create Refund button, and then click the Confirm button.

1. From the Claims page, click the link for the claim that you want to investigate or settle with a credit refund.

   The claim must not have a value of Closed or Cancelled in the Status field. Also, you cannot settle a claim that has claim lines or a claim balance that is negative or 0..

   The claim must have a value of Manual in the Source field. This field value is automatically populated when you create a claim on the Claims page.

2. On the Claim detail page that is displayed, click Refund Credit.

   The Refund Credit page displays the following:

   • The Customer, Company, and Currency fields show the filter matching criteria used to find associated invoice credits.
   • Claim Reference section shows the Claim, Claim Balance, and Balance Available to Refund fields. The Balance Available to Refund field is a calculated field that shows how much value remains after you select customer invoice lines for settlement.
   • The Invoice Credits tab shows customer invoice lines with balances that you can use to settle the claim and credit the customer account. Earned allowance accrual credits for the customer are displayed as invoice lines with an allowance accrual type. You might see other invoice lines with an overpayment type. You can also use these lines as credits. If you want to view all customer invoices for all customers and all invoice types, go to the Customer Invoices page.
3. Select the checkbox for at least one customer invoice line.

   The value in the Balance field for the customer invoice line is moved to the Refund Amount field for the customer invoice line. The Balance Available to Refund field is decreased by the sum of the values in the Refund Amount fields.

4. If the value in the Balance Available to Refund field is displayed in red text after you select customer invoice lines, change at least one value in the Refund Amount field so that the sum of the values in the Refund Amount field is the same as the amount in the Claim Balance field.

   

   The value in the Balance Available to Refund field is displayed in red text when the sum of the values in the Refund Amount fields exceeds the amount in the Claim Balance field.

5. Click Create Refund.

Enter the bank account, payment method, refund date, and a reference number, such as the claim number.

6. Click Confirm.

   A customer receipt is created, and the claim is closed. Customer invoices applicable to the customer receipt and that now have zero balances are closed. Customer invoices applicable to the customer receipt and that now have partial balances remain open.

   If you settle the claim for an amount less than the claim balance, a split claim is automatically generated for the remaining claim balance.

You can manually create claims from the Claims page so that you can perform research for claims that do not originate from the application process for customer receipts. After you research a manual claim, you can reject it. You can reject only manual claims, and not other claims. You reject the total claim amount, and not a portion of it.

1. From the Claims page, click the link for the claim that you want to reject.

   The claim must not have a value of Closed or Cancelled in the Status field. Also, you cannot reject a claim that has claim lines.

   The claim must have a value of Manual in the Source field. This field value is automatically populated when you create a claim on the Claims page.

2. On the Claim detail page that is displayed, click Reject.
3. On the page that is displayed, complete the following steps:
   1. In the Resolution Code field, select a value that indicates the reason for rejecting the claim.

      Only reason codes with a Type field value of Resolution are available for selection in this field.

   2. (Optional) In the Memo field, enter more text about the claim.
   3. Click Reject.

      The Claim detail page is displayed again. The value in the Settlement Method field is Rejected, the value in the Status field is Closed, and a claim line is displayed in the Claim Lines section.

You split a claim to allocate the claim amount to multiple new claims and close the original claim with a value of Split in the Settlement Method field. You can split a claim to take different actions for parts of the claim amount. For example, you can split a $200 claim to assign $150 to a collections department and to settle the remaining $50 by selecting a resolution code for the amount and writing off the amount.

1. From the Claims page, click the link for the claim that you want to split.

   The claim must not have a value of Closed or Cancelled in the Status field. Also, you cannot split a claim that has claim lines.

2. On the Claim detail page that is displayed, click Split.
3. On the page that is displayed, complete the following steps:
   1. Click Add to create a line for each new claim, and for each new claim, enter an amount in the Amount field, select a value in the Type field, and select a value in the Subtype field, if necessary.
   2. To write off a new claim that you create, select the checkbox for the new claim, and click Write Off.

      The new claim is automatically populated with a claim number.

   3. To delete a new claim that you create, select the checkbox for the new claim, and click Delete.

      You cannot delete a new claim until after the new claim is saved.

   4. After you create the necessary lines for the new claims, click Save.

      The new claims are automatically populated with claim numbers.

      If the total amount of the new claims is not the same as the amount of the original claim, you cannot save the new claims. If necessary, change the new claim amounts until the new claim total is correct, and save the new claims again.

   5. Click Complete Split.

You can reopen (or reverse) only closed claims that occur in the current financial period. If the claim has a value of Split in Settlement Method field, and one of the related (split) claims is settled or closed, you cannot reopen the claim until the related claim is reopened. If a closed claim is settled with a customer invoice or credit (with a type of settlement, adjustment, and so on), the corresponding customer invoice status changes to Cancelled when you reopen the claim.

1. From the Claims page, click the link for the claim that you want to reopen.

   The claim must have a value of Closed in the Status field.

2. On the Claim detail page that is displayed, click Reopen.

   The Status field of the claim changes to Open, and you can process the claim as usual.

The following table lists the fields that Kenandy provides. Your system administrator selects the fields that are displayed on your user interface.

Claim Page

Field	Description
Aging Date	The aging date for the claim. This field is used for accounting purposes. This date is automatically populated with the value in the Claim Date field, but you can modify the date if necessary.
Amount	The amount of the claim.
Approval Status	The approval status of the claim. Options include: Pending Authorization, Approved, and Not Approved.
AR Reason Code	The reason code assigned to the claim.
Autonumber	An auto-generated ID that identifies the claim.
Bill to Customer	The name of the bill-to customer for the claim.
Claim	The ID of the claim.
Claim Balance	The balance of the claim. This field is calculated as follows: Amount field - Total Line Amount field. When the claim is closed or cancelled, this field is set to 0.00.
Claim Date	The date the claim is generated.
Company	The company associated with the claim.
Correspondent	The person assigned to investigate the claim. This field is automatically populated from the Customer page. You can change this value.
Currency	The currency for the customer invoice that is associated with the claim.
Currently Reopened Flag	An indication of whether the claim is currently reopened.
Customer Invoice	The customer invoice related to the claim.
Customer Receipt	The customer receipt related to the claim.
Customer Receipt Line	The customer receipt line related to the claim.
Days Aged	The number of days the claim has aged.
Days Open	The number of days (after the Claim Date field) that the claim has in the Open or New status.
Description	A description that explains the reason the claim is generated.
Enter Claims Notes	The comments about the claim.
Exceptions Count	The number of currently unresolved exceptions for the claim.
Has Exceptions	An indication of whether the claim has one or more exceptions.
Inventory Research	A value that specifies whether an adjustment to inventory is required. Options include: Adjustment Required, No Adjustment Required, and Reject. An inventory adjustment can apply in under-shipment or over-shipment scenarios in which the customer receives too few or too many items.
Last Action	The last action executed on the claim.
Line Exceptions	The number of exceptions for all lines on the claim.
Parent Customer	The parent customer for the customer who makes the claim.
Payment Amount	The payment amount for the customer invoice that is associated with the claim.
Payment Date	The date the customer invoice that is associated with the claim is paid.
Ready	An indication of whether the claim is ready for processing.
Reason	The reason for the claim, such as resolution, chargeback, and so on.
Reference	A reference number or code for the claim that the customer provides.
Related Claim	The claim related to this claim. If you split a claim, the original claim is displayed in this field for the new claims that you create.
Resolution Code	A code that indicates how the claim is resolved. This field is a reason code with a Type field value of Resolution. To learn more, see Reason Codes.
Settlement Date	The date that the claim is resolved or settled.
Settlement Method	The method used to settle the claim. Options include: Offset, Payment, Writeoff, Split, and Manual.
Shipment	The shipment for the sales order that generates the claim.
Sold to Customer	The sold-to customer for the claim.
Source	The source of the claim. Options include: Manual, Invoice Deduction, General Deduction, and Trade.
Status	The status of the claim. Options include: New, Open, and Closed.
Step	The current step in the claim process.
Subtype	The claim subtype. If the Type field is Transportation, the Subtype field is Damage. If the Type field is Promotion, the Subtype field is Trade, Coupon, or Rebate. You can configure the claim process engine to select a subtype from the reason code you assign to the claim.
Total Line Amount	The total amount of all lines in the claim.
Track	The tracking number for the claim.
Type	The type of claim. Options include: Transportation and Promotion. You can configure the claim process engine to select a Type from the reason code you assign to the claim.

The following table lists the fields that Kenandy provides. Your system administrator selects the fields that are displayed on your user interface.

Claim Line Page

Field	Description
Accounting Default	The accounting default for the claim line.
Autonumber	An auto-generated ID that identifies the claim line.
Claim	The claim for the claim line.
Claim Line	The ID of the claim line.
Customer Invoice	The customer invoice related to the claim line.
Customer Invoice Line	The customer invoice line related to the claim line.
Exceptions Count	The number of currently unresolved exceptions for the claim line.
Has Exceptions	An indication of whether the claim line has one or more exceptions.
Item	The item on the customer invoice that is associated with the claim line.
Reason Code	The reason code for the claim line.
Resolution Code	A code that indicates how the claim line is resolved. This field is a reason code with a Type field value of Resolution. To learn more, see Reason Codes.
Sales Order Line	The sales order line that is associated with the claim line.
Settling Claim	The claim against which this claim line is settled.
Total Amount	The total amount on the claim line.