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A provisional credit transaction will provide the customer with credit for some or all of the disputed transactions. It is commonly setup where the GL debit side points to an asset account with the credit side pointing to the customer account through the use of the special data entry values of -1.

 

 

A variation of this transaction would be to charge the GL debit side directly to the bank loss account. Should the provisional credit be revoked, the loss account would then be credited (see Reversal of Provisional Credit). The advantage of this setup would be that no additional transaction (see Loss Write Off) will be required if the provisional credit is given permanently to the customer. The drawback would be that the bank loss account is potentially being charged with large amounts that may be later revoked. This could create a loss balance that might fluctuate wildly.