Accounts Receivable Setup, on the Accounts Receivable Setup (SER) menu, determines the accounts receivable aging categories used on reports and inquiries, defines finance charge computations and assigns collection letters to each A/R aging category.

Date of Last Finance Charge Computation

This field displays the date of the last finance charge calculation generated through month end statement printing.

Finance Charges On Finance Charges

Enter Y if you want to calculate additional finance charges on top of finance charges included on previously printed statements.

A/R Aging Categories #1-4

Enter the A/R aging category used in calculating the age of an invoice based on the invoice date and the terms code.  This classification is used in inquiries and on aging reports.

Enter the collection letter sequence number for each aging category (template must be present in the memo writer).  The system will generate a collection letter based on the Accounts Receivable balance under this category.

Minimum To Bill Finance Charge

Enter the minimum invoice amount to calculate finance charge computation.

Finance Charge Percentage

Enter the finance charge percentage used in calculating finance charges.  This percentage and the finance charge amount prints on the statement as a separate line.  This is the monthly rate.

NOTE:   Since finance charges are seldom collected, these charges do not affect the accounts receivable balance when calculated.  When finance charges are collected, they are handled through cash receipts application by generating a G/L transaction to reflect the payment amount received.

FINANCE CHARGES AND COLLECTION LETTERS

To implement finance charge computation and collection letters, you must perform the following steps:

STEP 1  Enter the appropriate information in this accounts receivable set up option.     

STEP 2  Set up collection letter template in the memo writer.

1.  Press F1 to access the Hot Key Menu

2.  Select M for Memo Writer

3.  Select Text Only as the Memo Type

4.  Type only the body of the letter eliminating the salutation.  This is a generic letter or "template".  Each time a collection letter is generated, the customer information will be imported directly into the body of the letter.

5.  Type the closing of the letter as follows:

Respectfully yours,

John Brown

Collection Department

6.  Press F4 when completing the memo

7.  Select F8 Save/Delete Memo to file this template in correspondence inquiry.

Enter the salesman number you wish to file this under - because it is a template in this case, you may use any salesman number or House Account.  Enter the alpha sort code, this is a user defined code used in filing memos or messages.  For example the, the alpha sort code could be TEMP for template.  Then anytime you wish to retrieve a template memo (letters for quotes, proofs, etc.), the memo can be accessed by entering the alpha sort TEMP.

Once you "go on line", the alpha sort codes let you standardize the way you file memos, and messages so that you can retrieve them quickly in Correspondence Inquiry.

Enter a description for each letter.  The description will then be listed in Correspondence Inquiry.

Example:  The description could be:  Collection Letter Template #1.

STEP 3  Enter the appropriate collection letter sequence number in Accounts Receivable Setup under each aging category (1-4).  If you do not know the sequence number, refer to STEP 4.

STEP 4  Enter the memo sequence numbers that are appropriate for each aging category (1-4) in the Accounts Receivable Set-Up option.  Memo sequence numbers can be retrieved in each aging field by entering a "?" to display, at that time the Correspondence Inquiry Screen will display.

When statements are generated, you have the ability to request collection letters to print.  At that time, the system will generate the appropriate letter for accounts having past due invoices within the aging categories set up.