On Termination Of Contract, Credit Memo Not Generated For All Invoices
Last updated on MAY 22, 2017
Applies to:Oracle Lease and Finance Management - Version 12.2.5 and later
Information in this document applies to any platform.
On Termination of Contract, Credit Memo not generated for all Invoices.
For a Contract where the payment has been defined to be in 'Advance', at the time of termination, Credit memos are not being generated for invoices that have the same date as the termination effective from date.
A Contract is created effective from 01-Jan-17 and payment is in Advance. Billing has occurred for 3 months (01-Jan-17, 01-Feb-17 and 01-Mar-17). At that time, it is realized that the Asset value on the contract is not correct. So, this Contract is terminated with the Quote Effective From Date as 01-Jan-17 (which is the same as the Contract Start date). The expectation is that credit memos will be generated for all the 3 Invoices that have been raised. But the termination process only generates 2 Credit memos - for the Invoices dated 01-Feb-17 and 01-Mar-17. There is no Credit memo generated for the Invoice dated 01-Jan-17. This is creating issues in closing out the contract and related transactions
1. Create a Contract with an Effective From Date of 15-Feb-2017 (can be any Financial product) - for a term of 48 months
2. Create an Asset with a residual value
3. Create an Income Fee. Payment for the same is in 'Advance', 'Monthly'
4. Create a RENT payment for the asset - in 'Advance', Monthly'
5. Book the contract
6. Process billing till system date (12-Apr-17)
7. Process accrual till 31-Mar-17
8. Create a 'Full Termination' quote. Quote Effective from date = 15-Feb-2017 (this is the Contract Start Date). It is a 'Termination without Purchase'
9. Complete the Termination process - and status of the Contract changes to 'Terminated'
10. Process Billing for the contract as on 12-Apr-17 (system date)
11. Navigate to Operations > Invoices - and query for the Invoices generated for this contract
12. It shows the Credit memos that have been generated as part of the termination process
13. There are only 2 Credit memos generated - one for the Invoice dated 15-Mar-17 and the other for the invoice dated 15-Apr-17
14. Credit memo is NOT generated for the invoice dated 15-Feb-17
15. Due to this, the Customer balance and Contract balances do not close out as required and causes reconciliation differences
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