Applying Credit Memos to Deferral Schedules

If a user wants to apply credit to an existing deferral schedule, it can be accomplished by follwing this procedure:

Enter Credit Memo Line: The user must create a line on the Sales Credit Memo with the appropriate Unit Price value.

Open Advanced Deferral Window: Click on the SBS option and then select Advanced Deferral.

Advanced Deferral Window Launch: After clicking Advance Deferral, a new window will open that allows the user to do the following:

 

Apply Credit Memo

Type: Checkbox

Description: Allows the user to indicate whether the current credit memo line should be applied to a deferral schedule.

Functionality: When checked, the system enables the user to proceed with selecting a deferral schedule to apply the credit.

 

Validation Rules

The following logic governs the interaction between the “Deferral” button and the new “Apply Credit Memo” checkbox:

 

Mutual Exclusivity Enforcement

• If Apply Credit Memo is marked as true (checked), then:

  • The Deferral button must be automatically set to false.

  • The Deferral button must be disabled

  • Disabled and cannot be manually re-enabled.

• If the Deferral button is marked as true, then:

  • The Apply Credit Memo checkbox must be automatically set to false.

  • The Apply Credit Memo checkbox must be disabled and cannot be manually re-enabled.

 

Exclusive Selection Rule

• The user can select either the Deferral button or the Apply Credit Memo checkbox, but not both at the same time.

 

Field Clearing Logic

• When the user marks Apply Credit Memo as true the system will not clear any deferral information, we just disable those fields.

• We must make sure that if Apply Credit Memo is marked as true, then deferral information is there, but our preference would be to apply credit memo.

• When the user unmarks (sets to false) Apply Credit Memo, the system must clear the Deferral Schedule No. value to prevent inconsistent data.

 

Deferred Schedule

Type: Lookup field

Description: Lets the user select the specific deferral schedule to which the credit should be applied.

 

Validation Rules

• Only Active deferral schedules tied to the same customer as the credit memo are visible.

• Only those deferral schedules tied to the same item as a credit memo are visible.

• If MEM (Multi-entity Management) is installed, then the user can select the deferral schedule from the same entity.

• We can select any deferral schedule (normal, SLTLT & with P&L)

• The schedule can be partially recognized or stubbed.

• The same schedule can be used across multiple credit memos.

• The schedule must not be fully recognized or stubbed.

• When the user selects a deferral schedule for a Sales Credit Memo line, the system must validate the following ( in case of all type items except service items):

  • Credit Memo Line Quantity ≤ (Deferral Schedule Quantity: Total Already Credited Quantity)

  • Deferral Schedule Quantity: The total quantity originally set in the deferral schedule.

  • Already Credited Quantity: The cumulative quantity already credited through previous credit memos for this schedule.

  • Credit Memo Line Quantity: The quantity currently being entered on the new credit memo line.

 

• The system will not enforce any validation based on transaction dates when applying credit to a deferral schedule.

  • For example, if a deferral schedule starts from 06/05/2025 and a credit memo is created on 01/01/2025, the system will still allow the credit to be applied to that schedule.

  • This behavior is consistent with the current logic used when applying credits through the “Create Corrective Credit Memo” action.

 

Note: We will apply a standard process to apply the credit memo that we already have. & that process is summarized in the following chart:

 

 

Deferral Schedule Status Update After Credit Memo Posting

 

Here are examples based on above status conditions:

 

Audit Trail Impact of Applying a Credit Memo

 

 

Credit Adjustment Window – Display Fields

When a credit memo is applied to a deferral schedule, the Credit Adjustment Window will display the following details:

 

 

Schedule Total Impact

Adjustment Amount (Cumulative View)

• The “Adjustment Amount” field in the Deferral Schedule reflects the total cumulative amount applied via credit memos.

• This includes all credit memos posted and linked to the deferral schedule.

• The value is automatically updated as new credit memos are applied.