Returns and clawbacks

When you post a sales credit memo, Bitta Commission takes back what the original invoice paid: from the same salespeople, plans and components, at the invoice's rate and cost. If that commission was already paid, the next settlement claws it back.

How a credit memo finds the invoice

The first rule that works:

1. Line: the return line is applied to the invoice's item entry. This happens with Get Posted Document Lines to Reverse, Copy Document, and Cancel or Correct on the posted invoice.
2. Document: the credit memo has an Applies-to Doc. No. of an invoice. The first invoice line with the same type, number and variant is used.
3. None: the line is calculated like a new sale with a negative sign, with the plans on the credit memo's posting date.

Use Get Posted Document Lines to Reverse or Correct whenever you can. Then the take-back matches the invoice exactly.

What is taken back

Method	Taken back
% of Sales, Margin Band Rate	The credited amount at the invoice's rate, deduction and share.
% of Margin	The credited amount less the returned quantity at the invoice's unit cost, at the invoice's rate.
Amount per Unit	The returned quantity at the invoice's amount per unit.
Fixed per Sale	Only when the whole invoice line is returned.

Example: an invoice line of 10 cases for 1,000.00. Maya earned 5% (50.00) and Priya, with an overlay, 1% (10.00). A return of 2 cases (200.00) takes back 10.00 from Maya and 2.00 from Priya.

The credit memo writes Credit entries for the same salesperson, plans and components as the invoice line it returns.

When the take-back is payable

The take-back follows the invoice. With As Customer Pays it is payable at once. With When Fully Paid it becomes payable when the invoice is closed.

Netting example: an invoice of 1,000.00 at 6% earns 60.00, As Customer Pays. A linked credit memo of 200.00 takes back 12.00 and is applied to the invoice, which is now 20% settled, so 12.00 of the invoice commission becomes payable. When the customer pays the remaining 800.00, the invoice commission is fully payable. Net payable: 60.00 minus 12.00 = 48.00.

Clawbacks

If the commission was already paid, the negative amount appears on the next settlement as a Clawback and is offset against new commission. If a salesperson's total is negative, the settlement leaves them out and the balance carries forward. See Pay commission with a settlement.

Good to know

• A linked credit memo's take-back shows in the invoice's Commission FactBox and trace. Use Commission Entries on the posted credit memo to see its own entries.
• Credit memo lines on a G/L account take back nothing unless a line rule includes G/L accounts.
• A credit memo with a reason code marked No Commission Impact takes nothing back.