Credit Note Dilution

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What you need to know:

• Added a new eligibility rule "Credit Note Dilution"
• Reduces debtors eligible amount by total credit note value
• Only enabled in Australia for now

We have introduced a new eligibility rule "Credit Note Dilution".

Given we assess eligibility against the "sum total of money owed by debtors to clients", credit notes should logically reduce the money owed when considering sum totals.

When there are open credit notes totalling a value above 0, invoices are made ineligible in order of Due Date ascending (i.e. the invoice due soonest is diluted first).

This rule only applies to invoices after applying initial debtor and invoice rules. For example, any invoices made ineligible due to "Future Dated" or "Debtor Not Linked" will never be diluted. This is similar to the behaviour of the credit limit rule and concentration limit rule.

It is possible for partial eligibility where an invoice cannot be fully allocated by the sum of credit notes.
It is also possible for a £10,000 invoice to be 50% declined for dilution reasons and 50% declined for credit limit reasons.

Invoices impacted by this rule will be labelled with "Diluted by credit notes".

As with the other eligibility reasons, you can filter invoices by rule if you click on the rule decline reason in the "Decline reasons by amount" list.