How Redemption Cancellations Are Processed

When you cancel a redemption, the member’s point balance is credited with the number of points initially redeemed. So, a corresponding credit-type ledger is created for the canceled redemption. At the same time, all debit ledger traces are removed from the Traceability Loyalty Ledger object.

Considerations

  • After you enable traceability for fixed-duration currencies, the original expiration date is automatically restored to points credited from canceled redemptions. This restoration happens even when the Add Expiration Date for Points Credited by Canceled Redemptions setting is disabled.
  • When only Point Tracing for Fixed Duration Currencies is enabled, redemption transactions can’t be canceled if points credited by at least the threshold number of associated ledgers haven’t expired. By default, the threshold is 1,500. So, you can cancel a transaction with 1,600 ledgers if points credited by 300 of those ledgers have expired. However, you can't cancel a transaction with 1,600 ledgers if points credited by only 50 of those ledgers have expired.
  • For traceable currencies, when you cancel a redemption after the points expiration date, no points are returned. A credit ledger and an expiry ledger are created to trace the expired points.
Example
Example

Adria Darby redeemed 500 points for a sweatshirt. A debit ledger, DL1, was created for this transaction. They now want to return the sweatshirt, which means 500 points must be credited. After the redemption cancellation is processed, a credit ledger, CL4, is created to return the points and balance the debit.

Ledger ID Type TJ ID Points Loyalty Program Currency Currency Subtype Expiration Date
CL1 Credit TJ1 100 Member Points Reward Points 1/1/2025
CL2 Credit TJ1 500 Member Points Bonus Points 1/1/2025
CL3 Credit TJ2 2000 Member Points Partner Points 1/1/2025
DL1 Debit TJ3 500 Member Points    
DL2 Debit TJ4 300 Member Points    
DL3 Debit TJ5 100 Member Points    
DL4 Debit TJ5 500 Member Points    
CL4 Credit TJ6 500 Member Points Partner Points 1/1/2025

To balance the original redemption transaction, DL1, the program first removes all the DL1 debit ledgers and their associations. So, the DL1 record associated with CL3 is removed. Next, a new DL1 association is created with CL4, the ledger associated with redemption cancellation. The Action Type for this record is updated to Debit Cancellation to indicate the type of association.

Debit Ledger ID Credit Ledger ID Action Type Points Currency Currency Subtype
DL2 CL3 Debit 100 Member Points Partner Points
DL2 CL3 Debit 200 Member Points Partner Points
DL3 CL1 Credit Cancellation 100 Member Points Partner Points
DL4 CL2 Credit Cancellation 500 Member Points Partner Points
DL1 CL4 Debit Cancellation 500 Member Points Partner Points