Group Payment Rule Maintenance

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

Purpose

Define valid chargeback groups and divisions.

Overview

Use Group Payment Rule Maintenance to define valid chargeback groups and divisions. By setting up chargeback groups and divisions, you can:

Use groups and divisions for default chargeback and payment processing options (to avoid having to set these up individually for every billing customer).
Use chargeback groups and divisions for analysis. Chargeback group and/or chargeback division selection is available in Chargeback Management Aging Analysis. Also, these fields can be used for custom reporting and/or Cognos Business Intelligence purposes.

Note A Default chargeback group and division are automatically created and assigned to all customers. You need to update the rules for this group and division for your specific needs.

Every billing customer must be assigned to a chargeback group and a chargeback division.

Note You should try to organize billing customers into logical chargeback groups and chargeback divisions. For example, you could use chargeback groups to group billing customers that have the same processing options. You could use chargeback division to group billing customers that are in the same industry.

Adding Chargeback Groups or Divisions

To add a new chargeback group or division:

Select the Chargeback Group radio button if you want to add a new chargeback group or the Chargeback Division radio button if you want to add a new chargeback division.
Click the New button in the ribbon.
Enter a chargeback group or division ID in the Chargeback Group ID or Chargeback Division ID field.
Enter a name for the chargeback group or division in the Name field.
Verify the currency to use for the chargeback group or division entered in the Display Currency field. If you want to use a different currency, click the Lookup button, and select a different currency.
If you want to navigate through chargeback groups or divisions using an order other than the ID's, enter a sequence number in the Sequence field.
Enter the payment options for the chargeback group or division.
Click the Chargebacks tab.
Enter the chargebacks options for the chargeback group or division. You must enter the default status and reason codes for the chargeback group or division in the Chargeback Default Status Code and Chargeback Default Reason Code fields.
Click the NSF Payments tab.
Enter the non-sufficient funds options for the chargeback group or division.
Click the OK button in the ribbon. The chargeback group or division is created.

Updating Chargeback Groups or Divisions

To update a chargeback group or division:

Display the chargeback group or division you want to update.
Click the Update button in the ribbon.
Update the chargeback group or division information as necessary.
Click the OK button in the ribbon. The chargeback group or division is updated.

Deleting Chargeback Groups or Divisions

To delete a chargeback group or division:

Display the chargeback group or division you want to delete.
Click the Delete button in the ribbon.
Click the OK button in the ribbon. The chargeback group or division is deleted.

Note You cannot delete a chargeback group or chargeback division if it is already assigned to a billing customer.

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

Ribbon Home Tab Buttons

Button	Description
Exit	Click this button to close the Group Payment Rule Maintenance window.
New	Click this button to create a new chargeback group or division.
Update	Click this button to edit payment rules for the selected chargeback group or 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 customer payment rules for the first chargeback group or division.
Prev	Click this button to display customer payment rules for the previous chargeback group or division.
Next	Click this button to display customer payment rules for the next chargeback group or division.
Last	Click this button to display customer payment rules for the last chargeback group or division.
Grouping Inquiry	Click this button to display Chargeback Group Inquiry, which allows you to view rules for chargeback groups and divisions.

Fields and Buttons

Field or Button	Description
Chargeback Group ID/Chargeback Division ID	Enter a chargeback group or division ID, or click the Lookup button to select a chargeback group or division ID. The Chargeback Group ID field is only available if you select the Chargeback Group radio button, and the Chargeback Division ID field is only available if you select the Chargeback Division radio button.
Name	Enter a short name for the chargeback group or division. This is a chargeback group if you select the Chargeback Group radio button, and it is a chargeback division if you select the Chargeback Division radio button.
Display Currency	Click the Lookup button to select a currency for all amounts in the Group Payment Rule Maintenance window. This field defaults to the currency that you use for the general ledger.
Sequence	Enter a display sequence if you want the chargeback groups or chargeback divisions to display in an order other than their ID.
Navigation	Select whether you want to view, create, edit, or delete chargeback groups or divisions.

Payments Tab Fields and Buttons

Field or Button	Description
Payment Discount Grace Days	Enter the number of days after the due date that the payment discount is still considered valid for the group or division. 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 %	Enter the positive or negative tolerance percentage for a payment discount that is valid for the group or division. 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	Enter the positive or negative tolerance amount for a payment discount that is valid for the group or division. 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. Note If both the payment discount tolerance percentage and payment discount tolerance amount are used (i.e., not zero values), then both tests must pass. Example The tolerance percentage is 5% and the tolerance amount is 1.00. The eligible discount is 10.00. In this case, a discount taken of 10.50 or less is valid because it passes the tolerance percentage test and the tolerance amount test.
Flag Partial Payments As Disputed	Select this check box to mark partially paid invoices as disputed for the group or division. 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.
Reference Payment Absorption Tolerance %	Enter 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 group or division. 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.
Reference Payment Absorption Tolerance Amount	Enter 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 group or division. 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	Enter the positive or negative maximum amount of absorption that is allowed for any payment for the group or division. This includes absorption amounts by specific reference number, as well as any remainder of a payment to be absorbed.
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.
Add	Click this button to add the selected algorithm in the Available Algorithms grid to the Algorithms Used grid.
Remove	Click this button to remove the selected algorithm in the Algorithms Used grid.
Algorithms Used	This grid displays selected algorithms for the chargeback group or division. 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.

Chargebacks Tab Fields and Buttons

Field or Button	Description
Automatic Chargeback for Ineligible Discounts	Select this check box for the group or division if you want ineligible payment discounts converted to chargebacks for values greater than or equal to the automatic chargeback minimum threshold amount. 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.
Automatic Chargeback Minimum Threshold Amount	Enter the minimum ineligible payment discount that will trigger an automatic chargeback for the group or division. This value works in conjunction with the Automatic Chargeback for Ineligible Discounts check box. 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 %	Enter the positive or negative percentage when applying a chargeback to a credit memo (or payment) that is automatically absorbed for the group or division. 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	Enter the positive or negative amount when applying a chargeback to a credit memo (or payment) that is automatically absorbed for the group or division. 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 Today	Select this check box for the group or division if you want the chargeback date to default to the payment date.
Default Chargeback Due Days	Enter the default number of days after the reference date that the chargeback is due for the group or division.
Default Chargeback Expiration Days	Enter the default number of days after the chargeback date when the chargeback expires and cannot be challenged for the group or division. Note Some mass merchants will not allow chargebacks to be challenged after they have exceeded their self-defined expiration date. It’s a good practice to populate this field anyway to act as an internal warning system to clean-up aging chargebacks.
Chargeback Default Status Code	Enter the default status code used in Chargeback Entry and Chargeback Redistribute for the group or division, or click the Lookup button to select the default status code. This must be a valid status code. For information on setting up status codes, see Chargeback Status Maintenance. Example Set up a status code of Unknown as the initial default status.
Chargeback Default Reason Code	Enter the default reason code used in Chargeback Entry and Chargeback Redistribute for the group or division, or click the Lookup button to select the default reason code. This must be a valid 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 %

Enter the percentage of the payment amount to charge for an NSF payment for the group or division.

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

Enter the flat amount to charge for an NSF charge for the group or division.

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.