The quick answer
Record the cash received on the customer payment, then use Deductions and Chargebacks to apply the agreed difference. After processing, check that the invoice is settled by the cash payment plus its deduction credit memo.
The screenshots use sample data and fictional person and operating-company names.
Before you start
This workflow requires Deduction and Chargeback Management and a configured deduction type with the appropriate associated item. Agree the allowance before entering it and use your organization’s accounting policy. A short payment alone leaves the difference outstanding. Enable Deduction Management in the SuiteApp setup, with payment and deduction permissions and a deduction type available to the subsidiary. Oracle notes that the SuiteApp has not been tested with SuiteTax.
01. Review the amount due
Open the unpaid invoice and compare its amount due with the customer’s remittance. Pinecrest Wholesale owes $1,845.00 on INV-84632 but pays $1,800.00 after an agreed $45.00 freight allowance.
02. Open customer payment entry
Go to Transactions → Customers → Accept Customer Payments. Select Pinecrest Wholesale and confirm the subsidiary, USD currency, and A/R account before applying the receipt.
03. Enter the cash received
On Apply → Invoices, select INV-84632 and enter 1800 in its Payment column. Confirm Payment Amount is $1,800.00. Using the full invoice balance here would overstate the cash received.
04. Review the agreed deduction
On the customer payment, open the Deductions and Chargebacks subtab and click Auto Apply Deductions. Review INV-84632 with Deduction Amount $45.00 and Deduction Type Freight Allowance. Keep Chargeback unchecked, confirm Total Deduction Amount, and save.
05. Reconcile the saved settlement
Confirm the saved payment is $1,800.00, then open the applied invoice. The SuiteApp generates the credit memo after saving. Allow deduction processing to finish; refresh or revisit if necessary. Under Related Records → Payments, compare the $1,800.00 payment and $45.00 credit memo with the $1,845.00 invoice total.
Check the result
- INV-84632 shows Paid In Full and Amount Due $0.00.
- The customer payment is $1,800.00 of cash.
- The $45.00 credit memo explains the remaining settlement.
Common questions
How do I accept an agreed deduction when a customer short-pays an invoice?
Record only the cash received on the customer payment, then use the payment’s Deductions and Chargebacks area to apply the agreed residual. Select the configured deduction type, leave Chargeback unchecked, review the amount, and save.
Why can an invoice show Paid In Full when the cash payment is less than its total?
An accepted deduction generates a credit memo that is applied to the invoice. For example, USD 1,800 cash plus a USD 45 deduction credit equals a USD 1,845 invoice. A short payment without an accepted deduction leaves the difference outstanding.
What does Auto Apply Deductions do?
Auto Apply Deductions identifies selected invoices with short payments and calculates the remaining amount as a deduction. Review the proposed amount, deduction type, and total before saving. Availability and behavior depend on the Deduction and Chargeback Management setup in your account.
Where can I see the credit memo that settled the remaining balance?
Reopen the invoice after deduction processing completes and review Related Records and the Payments list. You should see the customer payment and generated deduction credit memo. Processing time and visible fields can vary by account configuration; refresh if the credit is not yet shown.