What Is a Chargeback?

Chargebacks are used to re-bill the customer for items they didn't pay in full. A chargeback is a debit memo and replaces one or more open items. All chargeback numbers with a CB prefix are system assigned. You can create three kinds of chargebacks:

• detail

• summary

• memo

The general ledger accounts you assign to chargeback adjustment reason codes offset the receivable general ledger account journal entries when you create chargebacks. Detail chargebacks credit the open item's receivable account and redebits the same account when you create the chargeback. Summary and memo chargebacks credit the open item's receivable account and debits the receivable account assigned to the cash payment's process level.