Customer Collection Rule Maintenance

If you edit this topic, review Customer Collection Rule Maintenance Database Information.

Menu Path: Credit and Collections Images\bluerarw.gif Module Setup Images\bluerarw.gif Collection Images\bluerarw.gif Customer Collection Rule Maintenance

Purpose

Overview

Use Customer Collection Rule Maintenance to associate a billing customer to a collection group and to a collection division. The billing customer follows the collection rules of the default group or division, unless specifically overridden.

Note You should organize billing customers into logical collection groups and collection divisions based on the organizational structure of your company. For example, you could use collection groups to group billing customers that have the same processing options. You could use collection divisions to group billing customers that are in the same industry.

Refreshing of Collection Tasks

Upon making changes to a specific billing customer, collection tasks could be created or closed for the billing customer based on the changes made.

Customer Overrides

The billing customer follows the rules of its default collection group or collection division. To override the rules for the default group or division, select the appropriate Override check box, and enter the override rule.

Note The Customer fields always display the rule in effect for the customer. If the Override check box is cleared, then the rule displayed comes from the default group or division. If the Override check box is selected, then this customer has a rule different than the default group or division.

Ribbon Home Tab Buttons

Button

Description

Exit

Click this button to close the Group Collection Rule Maintenance window.

Update

Click this button to update the selected collection group or collection division.

OK

Click this button to accept an action. This button is only available after you click the Update button in the ribbon.

Cancel

Click this button to cancel an action. This button is only available after you click the Update button in the ribbon.

First

Click this button to display the first collection group or collection division.

Prev

Click this button to display the previous collection group or collection division.

Next

Click this button to display the next collection group or collection division.

Last

Click this button to display the last collection group or collection division.

Fields and Buttons

Field or Button

Description

Customer Code

Enter a billing customer code, or click the Lookup button to select a billing customer code.

Customer Name

Enter a billing customer name, or click the Lookup button to select a billing customer name.

Collection Group

Enter the collection group for the selected billing customer, or click the Lookup button to select a collection group.

Collection Division

Enter the collection division for the selected billing customer, or click the Lookup button to select a collection division.

Collection Statement Group

Enter the collection statement group for the selected billing customer, or click the Lookup button to select a collection statement group.

Collection Letter Group

Enter the collection letter group for the selected billing customer, or click the Lookup button to select a collection letter group.

Collection Agency

Enter the collection agency for the selected billing customer, or click the Lookup button to select a collection agency.

Finance Charge Group

Enter the finance charge group for the selected billing customer, or click the Lookup button to select a finance charge group.

Display Currency

Click the Lookup button to select the currency for all amounts displayed in this window. This field defaults to the default general ledger currency. The Lookup button is disabled when you are updating a customer collection rule.

Default

Select whether the default collection rules for the selected customer come from the customer's collection division or collection group.

Collection Tasks Tab Fields and Buttons

Field or Button

Description

Refresh Collection Tasks

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then select the Customer check box if you want to have collection tasks automatically refreshed when Collection Task Refresh is run. Created collection tasks appear in Collection Task Management.

Note If you are in regular contact with certain large customers (e.g., Wal-Mart) to resolve open accounts receivable items and do not need to be reminded, clear this check box.

Past Due Grace Days

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then enter the number of days to add to the due date before considering a transaction past due for collection task purposes in the Customer field.

Example The due date for an invoice is 6/30/2020 and the grace days is 7. This invoice is not considered past due for creating a collection task until 7/8/2020.

Minimum Past Due Balance

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then enter a minimum past due balance for creating collection tasks in the Customer field. In Collection Task Refresh, collection tasks are created based on past due accounts receivable transactions. This field provides a way to avoid creating a collection task for a minor past due balance.

Example If all past due invoices equal 75, and the minimum past due balance is 100, then no collection task will be created.

Note If both the Minimum Past Due Balance and Minimum Past Due Percentage fields are used, then both conditions must be met prior to creating a collection task.

Minimum Past Due Percentage

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then enter a minimum past due percentage for creating collection tasks in the Customer field. In Collection Task Refresh, collection tasks are created based on past due accounts receivable transactions. This field provides a way to avoid creating a collection task for a minor past due balance measured on a percentage basis.

Example If the past due accounts receivable balance equals 10,000, the total accounts receivable outstanding is 100,000, and the minimum past due percentage is 5%, then the past due percentage is 10% (10,000 / 100,000) and a collection task is created.

Note If both the Minimum Past Due Balance and Minimum Past Due Percentage fields are used, then both conditions must be met prior to creating a collection task.

Due Date Reminder

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then select the Customer check box if you want the software to create reminder collection tasks to remind customers of soon-to-be-due invoices, based on the reminder lead days entered in the Reminder Lead Days field.

Reminder Minimum Amount

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then enter the minimum amount of invoices for which to create reminder collection tasks in the Customer field. Reminder collection tasks are only created if the Due Date Reminder check box is selected.

Reminder Lead Days

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then enter the number of days prior to invoice due dates for which to create reminder collection tasks in the Customer field. Reminder collection tasks are only created if the Due Date Reminder check box is selected.

Reminder Priority

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then enter the priority to assign to reminders when creating reminder collection tasks in the Customer field. Reminder collection tasks are only created if the Due Date Reminder check box is selected.

Note Priority can be in ascending or descending priority.

Create Prepayment Invoice Reminder Tasks

Select this check box to create prepayment invoice reminder tasks that indicate when open accounts receivable transactions and associated prepayment transactions can be cleared for the customer. For information on processing accounts receivable prepayments, see Accounts Receivable Prepayment Process Flow.

Past Due Balance Tab Fields and Buttons

Field or Button

Description

Offset Unapplied Payments

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then select the Customer check box if you want to offset unapplied payments against the oldest past due invoices to determine whether to create a past due collection task.

Example There are two past due invoices totaling 2000. There are three unapplied payments totaling 1800. If this check box is selected, then the past due balance is considered to be 200, otherwise it is 2000.

Offset Credit Memos

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then select the Customer check box if you want to offset credit memos against the oldest past due invoices to determine whether to create a past due collection task.

Example There are two past due invoices totaling 2000. There are three credit memos totaling 1800. If this check box is selected, then the past due balance is considered to be 200, otherwise it is 2000.

Offset On-Accounts

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then select the Customer check box if you want to offset on-accounts against the oldest past due invoices to determine whether to create a past due collection task.

Example There are two past due invoices totaling 2000. There are three on-accounts totaling 1800. If this check box is selected, then the past due balance is considered to be 200, otherwise it is 2000.

Include Debit Memos

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then select the Customer check box if you want to include debit memos in the calculation of past due balance to determine whether to create a past due collection task.

Example There are two past due debit memos totaling 1000. If this check box is selected, then the past due balance includes this 1000, otherwise these debit memos are excluded.

Include Finance Charges

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then select the Customer check box if you want to include finance charges in the calculation of past due balance to determine whether to create a past due collection task.

Example There are two past due finance charges totaling 500. If this check box is selected, then the past due balance includes this 500, otherwise these finance charges are excluded.

Include Chargebacks

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then select the Customer check box if you want to include chargebacks in the calculation of past due balance to determine whether to create a past due collection task.

Example There are two past due chargebacks totaling 2500. If this check box is selected, then the past due balance includes this 2500, otherwise these chargebacks are excluded.

Include Disputed Invoices

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then select the Customer check box if you want to include disputed invoices in the calculation of past due balance to determine whether to create a past due collection task.

Example There are two past due disputed invoices totaling 300. If this check box is selected, then the past due balance includes this 300, otherwise these disputed invoices are excluded.

Include C.O.D. Invoices

If you want to override the collection group or collection division settings for this collection rule, select the Override check box. You can then select the Customer check box if you want to include C.O.D. invoices in the calculation of past due balance to determine whether to create a past due collection task.

Example There are two past due C.O.D. invoices totaling 200. If this check box is selected, then the past due balance includes this 200, otherwise it is excluded.

Past Due Buckets Tab Fields and Buttons

Field or Button

Description

Customer/Group/Division

Select Group or Division to view the customer's collection group or collection division collection aging values. Select Customer to display and/or modify customer override aging values.

Past Due Days

If you want to override the collection group or collection division aging buckets, enter the number of days to include in the past due bucket you are creating. These past due buckets are displayed for billing customers in Collection Task Management.

Example If the first past due bucket being created is 1-15 days past due, enter 15. If the 2nd past due bucket being created is 31-40 days, enter 10.

Note The last bucket must contain 999 past due days. This will help prevent situations where significantly past due transactions might be excluded.

Priority

If you want to override the collection group or collection division aging buckets, enter the priority assigned to a past due task in Collection Task Management.

Add

Click this button to add another past due bucket to the Collection Aging grid.

Remove

Click this button to remove the selected past due bucket from the Collection Aging grid.

Collection Aging

This grid displays collection aging buckets for the customer, collection group, or collection division. This grid includes the following columns:

  • Past Due Bucket # - This column displays the sequential number of each past due bucket.

Example If the first past due bucket is for 1-15 days past due, then this bucket is bucket 1.

  • Past Due Days - Enter the past due days for each bucket.

  • Past Due Aging Label - Enter the label associated with each past due bucket. This label initially defaults based on the previous buckets past due days, but can be manually overridden.

Example If the first past due bucket being created has 15 past due days, then the label defaults to 1-15 .

Collection Statement Tab Fields and Buttons

Field or Button

Description

Statement Option

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then click the Lookup button to the right of the Customer field to select one of the following collection statement options to determine whether collection statements print in Collection Statement Print:

  • Always - Always print a statement for the customer regardless of the balance or past due condition.

  • Never - Never print a statement. Customers are excluded from statement printing.

  • Non-Credit Balance - Only print a statement if the customer’s adjusted accounts receivable balance is greater than or equal to the amount entered in the Minimum Balance field.

  • Past Due Balance - Only print a statement if there are past due accounts receivable transactions and the adjusted accounts receivable balance is greater than or equal to the amount entered in the Minimum Balance field.

Minimum Balance

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then enter an amount that the adjusted accounts receivable balance must be greater than to qualify for printing a collection statement in the Customer field.

Statement Type

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then click the Lookup button to the right of the Customer field to select a statement type. Select one of the following options:

  • Balance Forward - Display a beginning balance, a list of all of the transactions, then the ending balance (similar to a credit card statement). This option works in conjunction with the Balance Forward Frequency and Balance Forward # of Weeks fields.

  • Open Item - Display open accounts receivable transactions as of a specific date on the collection statement.

Balance Forward Frequency

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then click the Lookup button to the right of the Customer field to select how often the customer receives collection statements. Select one of the following options:

  • Weekly - Customers receive statements based on one or more weekly cycles (for example, every two weeks).

  • Monthly - Customers receive statements every calendar month-end.

Balance Forward # of Weeks

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then enter the number of weeks back that the balance forward starts in the Customer field.

Aging Basis

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then click the Lookup button to the right of the Customer field to select an aging basis for the customer. Select one of the following options:

  • Due Date - Use the due date to calculate the aging buckets.

  • Reference Date - Use the reference date to calculate the aging buckets.

Sorting

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then click the Lookup button to the right of the Customer field to select a method of sorting for the collection statements. You can sort by reference number, reference date, or due date.

Exclude Credit Memos - Days Prior

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then enter a number of days to exclude any credit memos older (based on comparing the statement date and the reference date) than this number of days from statement printing in the Customer field.

Example You enter 90 in this field. A statement is run as of 12/31/2020 for Customer A. There are credit memos for $100 dated 2/10/2020 and $300 dated 11/30/2020. The credit memo for $100 dated 2/10/2020 is excluded from Customer A’s statement.

Note If you always want credit memos to be printed on statements regardless of how old they are, enter 9999 in this field.

Offset Unapplied Payments

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then select the Customer check box if you want to offset unapplied payments against the oldest past due invoices to determine whether there is a past due balance. This rule works with the Past Due Balance statement option.

Example There are two past due invoices totaling $2,000. There are three unapplied payments totaling $1,800. If this check box is selected, then the past due balance is considered to be $200, otherwise it is $2,000.

Offset Credit Memos

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then select the Customer check box if you want to offset credit memos against the oldest past due invoices to determine whether there is a past due balance. This rule works with the Past Due Balance statement option.

EXAMPLE There are two past due invoices totaling $2,000. There are three credit memos totaling $1,800. If this check box is selected, then the past due balance is considered to be $200, otherwise it is $2,000.

Offset On-Accounts

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then select the Customer check box if you want to offset on-account amounts against the oldest past due invoices to determine whether there is a past due balance. This rule works with the Past Due Balance statement option.

EXAMPLE There are two past due invoices totaling $2,000. There are three on-account transactions totaling $1,800. If this check box is selected, then the past due balance is considered to be $200, otherwise it is $2,000.

Include Chargebacks

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then select the Customer check box if you want to include chargebacks (reference type of CB) for printing and for the calculation of adjusted accounts receivable balance.

Include Disputed Invoices

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then select the Customer check box if you want to include disputed invoices for printing and for the calculation of adjusted accounts receivable balance.

Include C.O.D. Invoices

If you want to override the collection statement group settings for this collection statement rule, select the Override check box. You can then select the Customer check box if you want to include C.O.D. invoices for printing and for the calculation of adjusted accounts receivable balance.

Collection Letter Tab Fields and Buttons

Field or Button

Description

Eligible to Get a Collection Letter

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then select the Customer check box if the customer can get a collection letter.

Past Due Balance

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then enter the minimum total open amount of past due receivables that will trigger a collection letter for the customer in the Customer field. The open amount may include unapplied payments, credit memos, on-accounts, chargebacks, disputed invoices, and/or C.O.D. invoices based on the collection letter group or customer settings.

Collection Letter Report

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then click the Lookup button to the right of the Customer field to navigate to and select a text file to use as the body of the collection letter for the customer.

Past Due Grace Days

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then enter the number of days to add to the due date before considering it past due for collection letter printing purposes for the customer in the Customer field.

Example The due date for an invoice is 6/30/2020 and the grace days is 7. This invoice is not considered past due for purposes of creating a collection letter until 7/8/2020.

Display Options

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then click the Lookup button to the right of the Customer field and select whether only past due (including grace days) invoices or all invoices are included on collection letters for the customer.

Offset Unapplied Payments

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then select the Customer check box if you want to offset unapplied payments against the oldest past due invoices to determine whether there is a past due balance.

Example There are two past due invoices totaling $2,000. There are three unapplied payments totaling $1,800. If this check box is selected, then the past due balance is considered to be $200, otherwise it is $2,000.

Offset Credit Memos

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then select the Customer check box if you want to offset credit memos against the oldest past due invoices to determine whether there is a past due balance.

EXAMPLE There are two past due invoices totaling $2,000. There are three credit memos totaling $1,800. If this check box is selected, then the past due balance is considered to be $200, otherwise it is $2,000.

Offset On-Accounts

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then select the Customer check box if you want to offset on-account amounts against the oldest past due invoices to determine whether there is a past due balance.

EXAMPLE There are two past due invoices totaling $2,000. There are three on-account transactions totaling $1,800. If this check box is selected, then the past due balance is considered to be $200, otherwise it is $2,000.

Include Chargebacks

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then select the Customer check box if you want to include chargebacks for collection letter printing and past due determination.

Include Disputed Invoices

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then select the Customer check box if you want to include disputed Invoices for collection letter printing and past due determination.

Include C.O.D. Invoices

If you want to override the collection letter group settings for this collection letter rule, select the Override check box. You can then select the Customer check box if you want to include C.O.D. invoices for collection letter printing and past due determination.

Finance Charges Tab Fields and Buttons

Field or Button

Description

Gets Finance Charge

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then select the Customer check box if you want to assess finance charges for the customer.

Print Finance Charge Invoices

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then select the Customer check box if you want to print finance charge invoices for the customer.

Note Some customers will only pay from an actual finance charge invoice, and some customers will pay based on a finance charge displaying on a customer statement.

Minimum Finance Charge Amount

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then enter an amount if you want to only assess a finance charge if it calculates to be at least this amount in the Customer field.

Annual Finance Charge %

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then enter the annualized finance charge percentage in the Customer field.

Finance Charge Grace Days

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then enter the number of days past the due date that the invoice is still considered current for finance charge assessment purposes in the Customer field.

Use Date-Specific Or Average Daily Calculation

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then click the Lookup button to the right of the Customer field to select how the finance charge calculation is made.

Note The average daily calculation is slated for functionality in a future release.

Finance Charge Payment Terms

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then click the Lookup button to the right of the Customer field to select the payment terms to use when creating finance charges. This affects the due date of these transactions.

Offset Unapplied Payments

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then select the Customer check box if you want to offset unapplied payments against the oldest past due invoices to determine whether there is a past due balance.

Example There are two past due invoices totaling $2,000. There are three unapplied payments totaling $1,800. If this check box is selected, then the past due balance is considered to be $200, otherwise it is $2,000.

Offset Credit Memos

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then select the Customer check box if you want to offset credit memos against the oldest past due invoices to determine whether there is a past due balance.

Example There are two past due invoices totaling $2,000. There are three credit memos totaling $1,800. If this check box is selected, then the past due balance is considered to be $200, otherwise it is $2,000.

Offset On-Accounts

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then select the Customer check box if you want to offset on-account transactions against the oldest past due invoices to determine whether there is a past due balance.

Example There are two past due invoices totaling $2,000. There are three on-account transactions totaling $1,800. If this check box is selected, then the past due balance is considered to be $200, otherwise it is $2,000.

Include Debit Memos

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then select the Customer check box if you want to include debit memos for finance charge past due determination.

Include Finance Charges

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then select the Customer check box if you want to include previous finance charges for finance charge past due determination.

Include Chargebacks

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then select the Customer check box if you want to include chargebacks for finance charge past due determination.

Include Disputed Invoices

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then select the Customer check box if you want to include disputed invoices for finance charge past due determination.

Include C.O.D. Invoices

If you want to override the finance charge group settings for this finance charges rule, select the Override check box. You can then select the Customer check box if you want to include C.O.D. invoices for finance charge past due determination.