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What is Fractional Correction in a credit note?

Problem Statement

This article explains what Fractional Correction is and when it appears in credit notes.

Solution

When you create a credit note, the total invoice amount is prorated across all line items. If you edit the credit note amount or create multiple credit notes against one invoice, line item amounts are calculated using the same ratio as the original invoice. This can produce a small surplus or deficit, which is shown as Fractional Correction.

Note:

The fractional correction amount is not lost. It is applied to the final credit note that you create for that invoice.

Service period for credit note line items

Configure the default service period under Settings > Configure Chargebee > Billing LogIQ > Billing & Invoices > Set default service period for credit note line items. With the "Line items' billing period on the invoice" setting, the service period for credit note line items matches the billing period on the invoice. See this article for details.

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