What happens when a redemption transaction is canceled?

When a redemption transaction is canceled, a redemption reversal transaction journal is created. This process is essential for maintaining accurate records of loyalty points and ensuring transparency in the member's account. The creation of a reversal journal allows for the proper tracking of the cancellation event and adjusts the member’s loyalty point balance appropriately.

By generating a journal entry to document the reversal, the system can provide a clear audit trail and accountability for both the loyalty program administrators and the members. This action ensures that any redeemed points associated with the canceled transaction are reinstated to the member's account, thus reflecting the correct balance.

In contrast, automatic debiting of points or creating a new redemption transaction would not provide the necessary clarity or record of the cancellation, while leaving the transaction active without cancellation would lead to discrepancies in account management.