Customer Payment Rule Maintenance

Menu Path: Accounts Receivable $Images\bluerarw.gif$ Module Setup $Images\bluerarw.gif$ Customers $Images\bluerarw.gif$ Customer Payment Rule Maintenance

Purpose

Assign a chargeback group and a chargeback division for a billing customer.
Select a group’s or a division’s payment and chargeback rules as the default for a billing customer.

Overview

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

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

To assign a billing customer to a chargeback group and chargeback division, click the Update button in the ribbon, and select from the pre-defined lists. To select where rules should default, select Group or Division.

Customer Override Check Boxes

The billing customer follows the rules of its default group or 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 column always displays the rule in effect for this customer. If the Override check box is not selected, then the rule displayed comes from the default group or division. If the Override check box is selected, then the customer has a rule different than the default group or division.

For database information for this window, see Customer Payment Rule Maintenance Database Information.

Ribbon Home Tab Buttons

Button	Description
Exit	Click this button to close the Customer Payment Rule Maintenance window.
Update	Click this button to edit payment rules for the selected customer.
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 customer payment rules for the first customer.
Prev	Click this button to display customer payment rules for the previous customer.
Next	Click this button to display customer payment rules for the next customer.
Last	Click this button to display customer payment rules for the last customer.

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.
Name	Enter a billing customer name, or click the Lookup button to select a billing customer name.
Chargeback Group	Enter the chargeback group for the selected customer, or click the Lookup button to select a chargeback group.
Chargeback Division	Enter the chargeback division for the selected customer, or click the Lookup button to select a chargeback division.
Default Rules	Select whether the default rules for the customer originate from the chargeback group or the chargeback division.
Display Currency	This field displays the currency that you use for the general ledger; all amounts in this window are denominated in this currency.

Payments Tab Fields and Buttons

Field or Button	Description
Payment Discount Grace Days	These fields display the number of days after the due date that the payment discount is still considered valid for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value. Example A payment due date is 4/2/2020. If the number of grace days is set to 5, the payment discount is considered eligible through 4/7/2020.
Payment Discount Tolerance %	These fields display the positive or negative tolerance percentage for a payment discount that is valid for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value. Example This tolerance is set to 5%. The eligible discount on an invoice is $10.00. As long as the customer takes a discount of $10.50 or less, it is considered valid.
Payment Discount Tolerance Amount	These fields display the positive or negative tolerance amount for a payment discount that is valid for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value. Example This tolerance is set to 1.00. The eligible discount on an invoice is 10.00. As long as the customer takes a discount of 11.00 or less, it is considered valid.
Reference Payment Absorption Tolerance %	These fields display the positive or negative percentage that when applying a payment to a non-chargeback accounts receivable transaction (invoice, credit memo, etc.) is automatically absorbed for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value. Example An invoice has an open amount of 100.00. The absorption tolerance percentage is set up for 1%. If the amount applied to this invoice is between 99.00 and 101.00, then show this invoice as being paid off and absorb the positive or negative difference.
Ref Payment Absorption Tolerance Amount	These fields display the positive or negative amount that when applying a payment to a non-chargeback accounts receivable transaction (invoice, credit memo, etc.) is automatically absorbed for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value. Example An invoice has an open amount of 100.00. The absorption tolerance amount is set up for 5.00. If the amount applied to this invoice is between 95.00 - 105.00, then show this invoice as being paid off and absorb the positive or negative difference. Note If both the reference payment absorption tolerance percentage and reference payment absorption tolerance amount are used (i.e., not zero values), then both tests must pass. Example The tolerance percentage is 1% and the tolerance amount is 5.00. The open accounts receivable invoice amount is 100.00. In this case, only an amount applied between 99.00 and 101.00 would result in an absorption because that range passes both the tolerance percentage test and the tolerance amount test.
Payment Maximum Absorption Amount	These fields display the positive or negative maximum amount of absorption that is allowed for any payment for the customer, group, and division. This includes absorption amounts by specific reference number, as well as any remainder of a payment to be absorbed. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value.
Flag Partial Payments As Disputed	These check boxes are selected for the group, or division if partially paid invoices are automatically marked as disputed. If you want to override the group or division setting for the selected customer, select the Override check box, and then select or clear the Customer check box. Note Collection statements are not printed for disputed invoices. If this check box is selected, it may prevent collection statements from printing for customers with partially paid invoices.
Available Algorithms	This grid displays available algorithms that you can select for the customer. Only eligible algorithms set up in Accounts Receivable Control Maintenance are available in this grid. For more information, see Payment Algorithms FAQ.
	Click this button to add the selected algorithm in the Available Algorithms grid to the Customer Algorithms grid.
	Click this button to remove the selected algorithm in the Customer Algorithms grid.
	Click this button to move the selected algorithm up in the Customer Algorithms grid.
	Click this button to move the selected algorithm down in the Customer Algorithms grid.
Customer Algorithms	This grid displays selected algorithms for the customer. To remove an algorithm, double-click it, or select it, and then click Remove. Note The selected algorithms will be executed in the sequence listed.
Group Algorithms	This grid displays selected algorithms for the customer's chargeback group. Note The selected algorithms will be executed in the sequence listed.
Division Algorithms	This grid displays selected algorithms for the customer's chargeback division. Note The selected algorithms will be executed in the sequence listed.

Chargebacks Tab Fields and Buttons

Field or Button	Description
Automatic Chargeback for Ineligible Discounts	These check boxes are selected for the customer, group, or division if ineligible payment discounts are converted to chargebacks for values greater than or equal to the automatic chargeback minimum threshold amount. If you want ineligible payment discounts to be converted to a chargeback for values greater than or equal to the automatic chargeback minimum threshold amount for the selected customer, select the Override check box, and then select the Customer check box. Note A chargeback reason code that begins with the word Discount should be set up to easily segregate these ineligible cash discount chargebacks. For information on setting up chargeback reason codes, see Chargeback Reason Maintenance.
Auto Chargeback Minimum Threshold Amount	These fields display the minimum ineligible payment discount that will trigger an automatic chargeback for the customer, group, and division. This value works in conjunction with the Automatic Chargeback for Ineligible Discounts check boxes. Example The Automatic Chargeback for Ineligible Discounts check box is selected. The automatic chargeback minimum threshold amount is set up for 10.00. An invoice has an eligible discount of 20.00. The payment discount tolerance percentage is set up for 1% (which calculates to 2.00). The payment discount tolerance amount is set up for 5.00. So, the most that the customer can deduct is 22.00 without being considered for a chargeback. The customer deducts 25.00, so now this triggers an evaluation of whether to create a chargeback. The 25.00 actual discount taken minus the 20.00 eligible discount leaves 5.00 - since this is less than the automatic chargeback minimum threshold amount of 10.00, no chargeback is created.
Chargeback Absorption Tolerance %	These fields display the positive or negative percentage when applying a chargeback to a credit memo (or payment) that is automatically absorbed for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value. Example A chargeback has an open amount of 100.00. The absorption tolerance percentage is set up for 1%. If the amount applied to this chargeback is between 99.00 and 101.00, then show this chargeback as being paid off and absorb the positive or negative difference.
Chargeback Absorption Tolerance Amount	These fields display the positive or negative amount when applying a chargeback to a credit memo (or payment) that is automatically absorbed for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value. Example A chargeback has an open amount of 100.00. The absorption tolerance amount is set up for 5.00. If the amount applied to this chargeback is between 95.00 and 105.00, then show this chargeback as being paid off and absorb the positive or negative difference. Note If both the chargeback payment absorption tolerance percentage and chargeback payment absorption tolerance amount are used (i.e., not zero values), then both tests must pass. Example The tolerance percentage is 1% and the tolerance amount is 5.00. The open accounts receivable chargeback amount is 100.00. In this case, an amount applied of between 99.00 and 101.00 results in an absorption because that range passes both the tolerance percentage test and the tolerance amount test.
Default Chargeback Date to Payment Date	These check boxes are selected for the customer, group, or division if the chargeback date defaults to the payment date. If you want the chargeback date to default to the payment date for the selected customer, select the Override check box, and then select the Customer check box.
Default Chargeback Due Days	These fields display the default number of days after the reference date that the chargeback is due for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value.
Chargeback Default # of Expiration Days	These fields display the default number of days after the chargeback date when the chargeback cannot be challenged for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value.
Chargeback Default Status Code	These fields display the default status code used in Chargeback Entry and Chargeback Redistribute for the customer, group, and division. This must be a valid status code. If you want to enter a status code for the customer that overrides the group or division status code, select the Override check box, and then enter the status code, or click the Lookup button to select a status code. For information on setting up status codes, see Chargeback Status Maintenance.
Chargeback Default Reason Code	These fields display the default reason code used in Chargeback Entry and Chargeback Redistribute for the customer, group, and division. This must be a valid reason code. If you want to enter a specific reason code for the customer that overrides the group or division reason code, select the Override check box, and then enter the reason code, or click the Lookup button to select a reason code. For information on setting up reason codes, see Chargeback Reason Maintenance.

NSF Payments Tab Fields and Buttons

Field or Button

Description

NSF Payment Charge %

These fields display the percentage of the payment amount to charge for an NSF payment for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value.

Example A payment of 100.00 was made and subsequently the check bounced for non-sufficient funds. If the NSF payment charge percentage is set up for 5%, the NSF invoice is created for 105.00.

NSF Payment Minimum Charge Amount

These fields display the flat amount to charge for an NSF charge for the customer, group, and division. If you want to enter a specific value for the customer that overrides the group or division value, select the Override check box, and then enter the value.

Example A payment of 100.00 was made and subsequently the check bounced for non-sufficient funds. If the NSF payment charge amount is set up for 25.00, the NSF invoice is created for 125.00.

Note If both NSF payment charge percentage and NSF payment minimum charge amounts are used (i.e., not zero values), the greater of the two charges is used.