‘Reason Codes’ configured in the system help to handle the ‘payment differences’ of INDIVIDUAL open items in an invoice (EITHER USING payment or advice or in the normal course). To each of the reason codes, you will define the ‘posting rules’ and the GL accounts in the IMG. Once done, when there is a payment difference against a particular open item, the system looks for the reason code:

• When the ‘charge-off indicator’ has been SET for that reason code, then the system posts the payment difference to a GL account. When this indicator is not set, then a new open item is created for the payment difference.
• When ‘disputed item indicator’ has been set, then the system ignores these line items when counting for the customer’s credit limit.

‘Reason Codes’ configured in the system help to handle the ‘payment differences’ of individual open items in an invoice (either using payment or advice or in the normal course). To each of the reason codes, you will define the ‘posting rules’ and the GL accounts in the IMG. Once done, when there is a payment difference against a particular open item, the system looks for the reason code: