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JD Edwards World Accounts Receivable Guide
Release A9.3

E21489-02
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43 Manage Collections Information

This chapter contains these topics:

After you send invoices to your customers, you might need to manage their accounts for collection purposes. For example, you might need to review and analyze a customer's past-due account and determine whether to send it to an outside collections agency.

43.1 Reviewing Past-Due Accounts

Navigation

From Accounts Receivable (G03), choose Credit/Collection Management

From Credit & Collection Management (G0315), choose Collections Manager

To determine which customer accounts are overdue and the number of days in which the accounts are delinquent, review past-due accounts. You can control the information that the system displays by setting a processing option.

In addition, you can review:

Collections information is stored in the following tables until the system updates the A/R Cash Management worktable (F0315):

43.1.1 Before You Begin

  • Run the Credit Analysis Refresh program (P03525) to ensure that the collections information is current

To review past-due accounts

On Collections Manager (P03218)

Figure 43-1 Collections Manager screen

Description of Figure 43-1 follows
Description of "Figure 43-1 Collections Manager screen"

  1. Display all past-due accounts for all collection managers, or complete the following field to limit the information displayed:

    • Collections Manager

  2. To further limit the information, complete any of the following fields:

    • Company

    • Parent

    • Worked

    • Review

    • Aging From

    • Aging Thru

  3. To review the total amount due and aging information, use the Alternate Format function (F15), then move forward or backward through the aging information using the Display Aging Forward/Backward functions (F16/F17).

43.1.2 What You Should Know About

Topic Description
Reviewing additional account information From Collections Manager, you can access additional account information that might be useful when you review past-due accounts. For example, you can access:
  • Detailed customer ledger information

  • Summarized account information, such as the date of the first and last invoice

  • Customer master information

  • Detailed messages about any action taken to collect overdue amounts

Multi-Currency If you specify a company, the system uses the decimals of that company's currency to display amounts. If you do not specify a company, the system uses the amount currency you set up in the customer record.
Selecting text messages Set the Message Text Version processing option to select the Message Text Entry program you want to use with the Collection Manager program.

43.1.3 Processing Options

See Section 103.7, "Collections Manager (P03218)."

43.2 Reviewing Customer Payment History

Navigation

From Accounts Receivable (G03), choose Credit/Collection Management

From Credit & Collection Management (G0315), choose Customer Payment History

Alternatively, you can access customer payment history from the Customer Payment History form.

As part of your collection activities, you might want to analyze the payment trends of a customer. To do so, review the customer's payment history.

Customer Payment History consists of A/R activity over three fiscal quarters. This information is maintained in the A/R Ledger table.

43.2.1 Before You Begin

  • Run the Average Days Late program (P03830) to update the number of days a customer is late in paying their invoices.

How it Works

When entering the program the current year and month for Company 00000 is loaded in the "From Year" and "From Month" fields in the upper right hand corner of the screen.

The display is divided into four columns. The first three columns are based on a three-month period (quarter) and the fourth column is a total of the first three columns. The program looks at the GL Date field (RPDGJ) to determine which bucket (Quarter) to display the data. The quarters/dates that this program uses are based on the values in the From Year and From Month fields. The columns are determined in the following manner:

  1. The "From Year" and "From Month" are the beginning point for the first column.

  2. The months are then calculated and the headings for each column are determined.

  3. Three months are included in each column, thus representing a quarter.

Field Calculations

Field Criteria
Sales Looks at the records that have the following criteria:
  • Gross Amount > 0

  • Matching Doc Type = Blank

  • Doc Type NE RB (Ignores Chargebacks)

The Gross Amount of the selected records is compiled for this field.

Credits Looks at the records that have the following criteria:
  • Gross Amount < 0

  • Matching Doc Type = Blank

  • Doc Type NE RU (no Unapplied Receipts, RU treated as Cash Receipts)

The Gross Amount of the selected records is compiled for this field.

Cash Receipts Looks at the records that have the following criteria:
  • Matching Doc Type NE Blank

  • Matching Doc Type NE RE

  • Cash Receipt Transaction Code NE 'A' or 'W'

The Gross Amount of the selected records is compiled for this field.

Period High Sum This field is calculated based on the GL date in which account activity (invoice/receipt) took place. It takes all the invoices and receipts for a particular column's date range, processes them in order of occurrence, and accumulates a total for the period.

The logical file used to tally the amount is the F0311LD. This logical is ordering the records by Address Book number (RPAN8), GL date (RPDGJ), Document Type (RPDCT), Document Number (RPDOC), etc. While placing the records in this order, it is summing the gross amounts of these transactions. For example, three invoices were entered on consecutive GL days, RI $1000, RM $1000-, and RI $100. The Period High Sum would be $1000 since the $1000 was the first invoice, the credit memo netted the accumulated total to be 0, and the third invoice only made the accumulated period total $100.

If the same three items were entered with the same GL date, as RI $1000, RM $1000-, and RI $100 for the specific customer, the system would calculate a high balance amount of $100. When the items appear on the same GL day, these amounts are totaled for the day, before being included in the accumulated period high sum total.


EXAMPLE 1:

Based on the Customer Payment History example below, this amount is compared to the customer detail information for the period. As displayed, the period information is from 04/01/2016 through 06/30/2016. The invoice on 5/1/16 has initial balance for the period as 10,000.00. The accumulated total and the high period sum as of 06/01/2016 is 30,000.00.

Customer Payment History

06/16-04/16

Period High Sum. . 30,000.00

Pd. High Sum Date - 06/01/16

Customer Detail Information

Document Inv Date G/L Date Inv Amount Cumulative Amt
RI 11430 001 05/01/16 05/01/16 10,000.00 10,000.00
RI 11428 001 06/01/16 06/01/16 20,000.00 30,000.00

EXAMPLE 2:

Based on the Customer Payment History example below, this is compared to the customer detail information for the same period. The Period High Sum is 30,000.00 on the GL date of 06/01/2016.

Customer Payment History

07/16-05/16

Period High Sum. - 30,000.00

Pd. High Sum Date - 06/01/16

Customer Detail Information

Document Inv Date G/L Date Inv Amount Cumulative Amt
RI 11430 001 05/01/16 05/01/16 10,000.00 10,000.00
RI 11428 001 06/01/16 06/01/16 20,000.00 30,000.00
RU 10063 001 07/01/16 07/01/16 25,000.00-  
RU 10063 001 07/01/16 07/01/16 25,000.00-  
RC 11430 001 05/01/16 07/01/16 10,000.00-  
RI 11429 001 07/01/16 07/01/16 17,000.00 12,000.00
RC 11429 001 07/01/16 07/15/16 2,000.00- 10,000.00
RC 11428 001 06/01/16 07/15/16 20,000.00- 10,000.00-

The calculation for the GL Date 07/01/2003 was totaled first, and then summed with the cumulative balance. The calculation does not include the RU/RC record from the initial unapplied cash transaction. The original RU document gross amount will be included in the high sum calculation.

As displayed in the Cumulative Amount column, 30,000.00 is the period high sum and this occurred on the GL date of 06/01/2003.

Note:

If the high sum calculation is a negative number (receipts/credit memos more than invoices), no high sum will be displayed. Also, the discount taken amount for a receipt will be included with the net amount of the receipt.
Field Explanation
Period High Sum Date The GL date of when the high balance amount occurred.
Average Days Late Field Criteria This field is calculated by subtracting the Deposit G/L Date (RPDGJ) from the Invoice Due Date (RPDDJ) to determine the days past due. The days past due is multiplied by the receipt amount to arrive at the weighted days to pay. The weighted days is then divided by the gross amount of all receipts to result in the average days late. The program will do this calculation for the three defined periods. Totaling the weighted days from the three periods and dividing by the total gross amount of receipts for the periods calculate the Total field.

Note: This is different from the value that is shown with the same field name on Account Status Summary. That field is stored in the F0301 and comes from the Recalculate Average Days Late program (P03830). This field is calculated by the program behind the scenes, using data specific to the defined periods and is not stored in any file. Although the calculation is the same between the two programs, the data used in the calculation may be different therefore the results may not match.

Average Invoice Amount The average of all invoices.
Discounts Allowed A dollar amount of discounts allowed on the invoice.
Discounts Taken A dollar amount of discounts taken.
Finance Charges A dollar amount of finance charges applied.
Chargebacks A dollar amount of all chargebacks.
Adjustments Three rows of adjustments may appear on the video as applied during the cash receipts process. The first two are a dollar amount tied to the first two adjustment reason codes read from the A/R transactions file (F0311). The Other row is a dollar amount of all other transactions.

Multi-Currency

If you enter multiple currencies for a customer, the total amounts on Customer Payment History will be meaningless hash totals (a combination of all currencies entered).

To review payment history

On Customer Payment History

Figure 43-2 Customer Payment History screen

Description of Figure 43-2 follows
Description of "Figure 43-2 Customer Payment History screen"

  1. Complete one of the following fields:

    • Parent Number

    • Customer Number

  2. To further limit the information displayed, complete any of the following fields:

    • Company

    • From Year

    • From Month

    • Document Type (Include/Exclude)

43.2.2 What You Should Know About

Topic Description
Multi-Currency If you enter multiple currencies for a customer, the total amounts on Customer Payment History will be meaningless hash totals (a combination of all currencies entered). To avoid hash totals, set up multiple address book numbers for a customer, each with its own currency.

43.3 Reviewing Account Balances

To determine the open amount on an account, review the customer's account balance. This task consists of:

Account balance information is stored in the A/R Ledger table.

43.3.1 Reviewing Balances by Administrator

Navigation

From Accounts Receivable (G03), choose Credit/Collection Management

From Credit & Collection Management (G0315), choose Balance by Administrator

To view account information by location or account representative, review balances by administrator. You can view account balances by the information you defined for category codes 01 and 02 in the address book. For example, you can view all open account balances that are assigned to a specific salesperson.

To view balances by administrator

On Balance by Administrator (P03210)

Figure 43-3 Balance by Administrator screen

Description of Figure 43-3 follows
Description of "Figure 43-3 Balance by Administrator screen"

Display all account balances for your default location or branch, or complete any of the following fields to limit the information displayed:

  • Location or Branch

  • Salesperson

  • Paid

43.3.2 What You Should Know About

Topic Description
Reviewing other types of account information You can access other types of account information for a customer on Balance by Administrator. For example, you can access:
  • Customer ledger information

  • Account status information


43.3.3 Reviewing Balances by Business Unit

Navigation

From Accounts Receivable (G03), choose Credit/Collection Management

From Credit & Collection Management (G0315), choose Inquiry by Business Unit

In addition to reviewing a customer's account balance by administrator, you can review the open amount of the account by business unit.

To review balances by business unit

On Inquiry by Business Unit

Figure 43-4 Inquiry by Business Unit screen

Description of Figure 43-4 follows
Description of "Figure 43-4 Inquiry by Business Unit screen"

  1. Complete the following field:

    • Business Unit

  2. To limit the information displayed, complete any of the following fields:

    • Document Type

    • Paid

    • G/L Offset

43.3.4 What You Should Know About

Topic Description
Specifying a business unit The business unit you specify on Inquiry by Business Unit is the business unit of the invoice record, not the business unit for the G/L distribution.

43.4 Working Past-Due Accounts

Navigation

From Accounts Receivable (G03), choose Credit/Collection Management

From Credit & Collection Management (G0315), choose Promise Entry & Inquiry

When managing collection information for your customers, you might need to work those accounts that are past due. An account is considered "worked" after you enter a collections message.

After you work a past-due account, the customer no longer appears on Collections Manager. If the account remains past due based on the tickler date, the account will appear again.

Promises Entry and Inquiry is a version of the Address Book Message Log. You can view a list of customers and use the search type and category codes to create specific lists of customers.

Working past-due accounts consists of:

See Also:

43.4.1 Reviewing Promises Messages

When working past-due accounts, you might need to review promises messages for the customer. A promises message might contain detailed information about the action taken to collect overdue invoices on a customer's account.

For example, a promise message might read A delinquency notice was sent June 30, 2010. A promises message might also document a conversation with a customer about its past-due account balance. For example, the message might read Spoke with the accounts payable manager, John White, and he said payment will be sent at the end of the month.

To review promises messages

On Promises Entry & Inquiry

Figure 43-5 Promise Entry & Inquiry screen

Description of Figure 43-5 follows
Description of "Figure 43-5 Promise Entry & Inquiry screen"

  1. Complete the following field or a portion thereof:

    • Skip to

  2. Choose the See Memo option (7) next to the customer to access Message Inquiry and view a portion of the first line of text for each message.

    Figure 43-6 Message Summary screen

    Description of Figure 43-6 follows
    Description of "Figure 43-6 Message Summary screen"

  3. On Message Inquiry, choose the View/Enter Message option (4) next to the appropriate message.

43.4.2 Entering Promises Messages

To document any communication with a customer, such as a commitment to pay an invoice on a certain day, enter a promises message. You can enter promises messages to better manage collection reminders, customer communications, and future actions.

To enter promises messages

On Promises Entry & Inquiry

  1. Complete the following field or a portion thereof:

    • Skip to

  2. Choose the Send Memo option next to the customer to access Message View/Entry.

    Figure 43-7 Message View Entry screen

    Description of Figure 43-7 follows
    Description of "Figure 43-7 Message View Entry screen"

  3. On Message View Entry, complete the following fields:

    • Tickler Date

    • Message Type 1

    • Message Type 2

    • Name

    • Company (optional)

    • Phone (optional)

    • Speed Message Type

  4. Complete the necessary text on the Message lines.

Field Explanation
Tickler Date The future reminder date. The system will not send the message until this date.
Message Type 1 A code used to classify types of messages. For example:

I – Internal Message - entering message of this type does not remove customer from credit or collection review.

P – Promises, Promises Message.

F – Other Promises, Promises Message - a secondary classification of Promises, Promises messages.

If using Promises, Promises, you might want the default to be P, so that you can print your reports using this code.

Message Type 2 A code that classifies the type of messages. For example:

S – Direct Sale

D – Distributor Sale

Speed Message Type A user defined code (01/MT) that specifies speed messages in the Electronic Mail system. When a Speed Message Type code is entered on Message View/Entry, the code's description is automatically added as the message text. Examples are, "Please call back" or "Returned your call."

43.4.3 What You Should Know About

Topic Description
Entering a message without working an account You can enter a promises message for a customer without working the account. To do so, specify I (internal) in the M1 field and leave the tickler date blank. This designates the message is for internal purposes.

43.5 Using the Accounts Receivable Activity Log

Use the Accounts Receivable Activity Log to review and manage account activities.

43.5.1 Managing Account Activities

The account activity log can be used to review a history of credit and collection efforts and to show patterns and trends of customer habits. The account activity log produces a list of all the credit and collection activities associated with a customer, such as the date when statements, delinquency notices, and finance charge fees were generated, as well as when their credit limit was changed or reviewed. From the list of activities associated with an account, detailed information about a specific activity can be accessed and reviewed. For example, if the activity indicates Over Credit Limit, you may access Account Status Summary to view the amount that the customer has exceeded their credit limit. If an account has a large number of delinquency processes or collection reviews associated with it, it may be considered a problem account; if very little activity is associated with an account, it might be considered to be performing well. The system displays activities for an account by activity date and priority.

43.5.2 Reviewing Account Activities

Navigation

From Accounts Receivable (G03), choose Credit/Collection Management

From Credit & Collection Management (G0315), choose Activity Log

The on-line Activity Log program (P0331) is a workbench program to review the customer's activities. You can display all activities associated with all accounts or complete any of the following fields to limit the information that the system displays:

  • Activity Number

  • Customer Number

  • Company - The system creates activities by company for statements (when the Company Consolidation processing option is left blank), delinquency notices and finance charges.

  • From Tickler Date

You can also change the order of how information is displayed by selecting a sequence value:

1 - Address number / tickler date

2 - Address number / activity priority

From the Activity Log there are several selection options available:

  • '1' - Exit to Promises, Promises

  • '2' - Exit to Account Status Summary

  • '3' - Exit to Customer Master

  • '4' - Exit to Customer Ledger Inquiry

  • '5' - Exit to Generic Text

Enter the corresponding option number to exit to pertinent A/R programs for that customer or enter generic text messages. There is also a function key exit (F21) to a DREAM Writer versions list program (P0331P) to print the Activity Log.

Access the Detail area (F4) to view information for the following activities:

  • Credit Limit Updated - Detail shows the prior and current values of the credit limit.

  • Over Credit Limit - Detail shows the amount customer is over and the credit limit.

  • Statements - Details shows the total due and the statement number.

There are two processing options for the Activity Log program to control the display and processing to meet the needs of your business.

Processing Option Description
Preloaded Data Selection This option will allow you to preload header information to the Activity Log. This information is used to select which log records are displayed.
DREAM Writer Versions This option will allow you to enter the version of the exit programs you can call from Selection Options.

43.5.3 Processing Options

See Section 103.9, "Activity Log (P0331)."

43.5.4 Setting Up Activity Type Master

Navigation

From Accounts Receivable (G03), use Hidden Selection 29 and press enter.

From Accounts Receivable Set Up (G0341), choose Activity Type Master

The system automatically generates an activity message when a specific activity occurs during the business day.

Each message is associated with a hard-coded activity type. The following list describes each activity type, the system generated activity message, and the process that generates the message:

The Activity Master is sent with seven predefined activities. The seven predefined codes are shown in the following table.

Activity Type Activity Message Description of Process
20 Credit Review Required The system generates this message when the date in the Next Review Date field on the Customer Master has expired and Credit Analysis Refresh (P03525) has been run
21 Over Credit Limit The system generates this message when the total amount of open invoices exceeds the amount entered in the Credit Limit field on the Customer Master and Credit Analysis Refresh has been run.
22 Credit Limit Updated The system generates this message when the amount in the Credit Limit field has been changed on either Address Book Control Revisions (P010513) or Credit Management (P0305).
30 Promises Promises Sent The system generates this message when a promise message is manually entered, and the M1 (message type 1) field is populated with a P.
40 Delinquency Notice Sent The system generates this message when a delinquency notice (P035111) has been processed.
42 Statement Sent The system generates this message for every statement issued (P035001).
50 Finance Charge Applied The system generates this message when a Finance Charge is created (P03435).

You may assign Activity Priority from 1 to 5 to each activity, with 1 being the highest priority and 5 the lowest priority.

The A/R programs that are responsible for these activities will call the Activity Log Server program (X0331) when one of the activities occurs during the business day. If the Activity Item has not been inactivated, the server is called and a record of the event is written to the Activity Log file (F0331).

Activities can be inactivated by entering a 1 in the Disable Activity field on the Activity Type Master file. If an activity type has been disabled the activity will not be recorded in the Activity Log file (F0331).

Note:

You may add your own activities to the Activity Master but this would also require some customized code. You would need to add a call to the Activity Log Server program (X0331) from the program or programs that caused your own activity to occur. This would be the only way your activity would get a record into the Activity Log.

43.5.5 Printing the Activity Log

In addition to online review of credit and collections activities associated with a customer the activity log may be printed. This enables review and management of account activities from a printed copy. To print the activity log, take the Function exit (F21) option to the print program (P0331P). There are two versions available, XJDE0001 - Activity Log by Customer and XJDE0002 - Activity Log by Activity. The difference between the two versions is the data sequencing; one report sequences customer first and the other sequences the activity first. Data selection can be used to limit the report to specific customers or to a specific activity type. The report pulls the information from the Customer Activity Log table (F0331).

43.5.6 Purging the Activity Log

You may wish to periodically purge the Activity Log file (F0331). To do so you may use the P00PURGE program and use data selection to select the records to purge. The field used for data selection may vary depending on your objective. For example you may select Customer Number to purge a customer that is no longer is active or Time Last Updated if you would like to purge older records for all customers.

43.6 Reviewing Collection Management Information

Navigation

From Accounts Receivable (G03), choose Customer & Invoice Entry

From Customer & Invoice Entry (G0311), choose Customer Ledger Inquiry

As you monitor and work your past-due accounts, you might need to decide whether to send payment reminders to a customer or whether the customer should appear on a collection report. To do so, review collection management information.

If you determine that a customer should appear on a collection report to be sent to an outside collections agency, you must verify that a reason code is defined.

To review collection management information

On Customer Ledger Inquiry

Figure 43-8 Customer Ledger Inquiry screen

Description of Figure 43-8 follows
Description of "Figure 43-8 Customer Ledger Inquiry screen"

  1. Define the necessary invoice search criteria in the header section.

  2. Choose the Collection Management option (3) next to the appropriate invoice.

    Figure 43-9 Collection Management screen

    Description of Figure 43-9 follows
    Description of "Figure 43-9 Collection Management screen"

  3. On Collection Management, verify information in the following fields:

    • Reminder Stop Reason Code

    • Reminder Stop Until Date

    • Collection Report

    • Collection Reason Code

    • Apply Finance Charges

    • Level of Last Sent Reminder

    • Date of Last Reminder

    • Date of Collection Report

    • Date of Interest Invoicing

Field Explanation
Reminder Stop Reason Code A code that identifies the reason for an adjustment, or a code that prevents an individual invoice from being included on a payment reminder. You define these codes in the AAIs so that the system can make the adjusting entries in the general ledger.

Typical reason codes are:

  • BD - Bad Debt Expense (BD is the Adjustment Reason)

  • DC - Damaged Goods Credit (DC is the Adjustment Reason)

  • MW - Minor Amount Write Off (MW is the Adjustment Reason)

  • TF - Tax or Freight Dispute (TF is the Adjustment Reason)

Reminder Stop Until Date The system does not send reminders to the customer until after this date.
Collection Report A code that indicates whether invoices for a particular customer appear for collection. If this field is Y (the default), invoices appear on the collection report after the maximum number of reminders have been sent to the customer and the final collection report is generated. If you enter N in this field, the customer's invoices are not eligible to appear on the collection report.
Collection Reason Code A user defined code (system 03/type CL) that indicates either the reason that the invoice was sent to collections or the particular collection agency responsible for the collection. A code is entered in this field when an invoice is sent to collections.
Apply Finance Charges A code that indicates whether finance charges should be applied or waived for the account. Valid codes are:

Y – Yes, apply finance charges

N – No, do not apply finance charges

blank – Process this account through the Interest Invoicing program (P03540)

Level of Last Sent Reminder This field specifies the level of the payment reminder that was sent on the last issue of payment reminders. It can be either be level 1, 2, 3 or 4, where 4 indicates that the customer's account is to be sent to collections.
Date of Last Reminder The date of the most recent past-due notice to the customer.
Date of Collection Report This date when an invoice was sent to collection.
Date of Interest Invoicing The date of an interest invoice.