In this article, you will learn why credits are automatically cleared after a fee reversal, especially in connection with a contract change, and how you can handle it.
Contents
- Basic Understanding: The Logic Behind Credits
- The Process: Automatic Clearing with Reversed Fees
- Example: Contract Change Leads to Clearing of Credit
- Solution: Manually Transferring the Credit
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- A credit is always linked to a specific contract and an associated charge (e.g., a membership fee).
- If this charge is reversed, the credit loses its link.
- Since the old contract is terminated by the change, there are no future charges against which the credit could be applied.
- The system therefore automatically clears the "orphaned" credit.
- To preserve the credit for the member, you must manually create it again in the new contract.
Basic Understanding: The Logic Behind Credits
A credit that you create for a member is not just a general value in the member's account. The system always links this credit directly to a specific contract of the member. It is intended to be offset against a future charge, such as the next membership fee, within that exact contract.
The Process: Automatic Clearing with Reversed Fees
The software operates on a clear principle: a credit needs an active charge to be linked to. If a charge for which a credit was intended is reversed, the system checks if there is another future charge in the same contract to which it can re-link the credit.
If the system does not find such a future charge – for example, because the contract was terminated – the credit can no longer be assigned to any purpose. In this case, it is considered "orphaned" and is consequently automatically cleared to keep the accounts clean.
Example: Contract Change Leads to Clearing of Credit
The behavior described above often occurs during a contract change. Imagine the following scenario:
1. A member switches from contract A to contract B.
2. In the course of this change, the last membership fee for the old contract A is reversed.
3. A credit that still existed in the old contract A loses its link due to the reversal.
4. Since contract A is now terminated and no further fees will be incurred, the system cannot find a new charge in this contract.
5. The credit is therefore automatically cleared. It is not automatically transferred to the new contract B.
This behavior is not an error, but the logical consequence of the strict, contract-based functionality of credits.
Solution: Manually Transferring the Credit
If you want your member to keep the credit after the contract change, a simple manual step is required. After the contract change is complete, go to the member's financial account and simply create the credit again in the desired amount for the new contract. This will correctly link it to the new contract, and it can be used for future fees.