Final settlement still credit customer after accrual is reversed with REU1 Rebate Unlikelihood

[chirashamihwa]

The scenario is that the customer has failed to meet the rebate threshold, and we need to reverse the accruals and close the agreement. We have used the condition type REU1 (Rebate Unlikelihood) and run a delta accrual. The accruals that had been posted for the agreement have been correctly reversed.

However, if we run a final settlement a credit is passed to the customer account.The expectation is that no credit should be passed to the customer account since there is no accrual available for the customer.

Is there some config that we are missing or we have incorrect? We will have background jobs running so this is a risk that a credit is passed to the customer when it shouldn’t be posted.

[MichaelWerner · Accepted solution]

What you describe is standard behavior. The settlement amount can be equal, larger or smaller than the accrual. Condition type REU1 is setting the accrual amount to zero, but it is not influencing the settlement amount.

Within the standard customizing scales are used for setting the target / rebate threshold. If done right this ensures that a settlement amount of zero is calculated if the target / rebate threshold is not met. 

Based on your description I assume that in your case somebody decides manually if the target / rebate threshold is met. Setting REU1 will not impact the settlement amount. Instead you need a 100% discount condition that is part of the pricing procedures for accrual and settlement.

[chirashamihwa · Accepted solution]

Thank you very much @MichaelWerner for your answer.

As per your suggestion I have added a discount condition type to the settlement pricing procedure and it works.