39 Set Up Credit and Collection Information

This chapter contains these topics:

Before you can manage credit and collection activity on a customer's account, you must set up various types of credit and collection information.

39.1 Defining Finance Charges


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

From Customer & Invoice Entry (G0311), choose Customer Master Information

As part of your collection activities, you might want to assess finance charges on overdue invoices. To do so, you must define the percentage that the system uses to calculate finance charges.

To define finance charges

On Customer Master Information, P01053,

Figure 39-1 Customer Master Information screen

Description of Figure 39-1 follows
Description of ''Figure 39-1 Customer Master Information screen''

Complete the following fields:

  • Monthly Finance Charge Percentage

  • Apply Finance Charges

39.2 Defining a Credit Limit

If you give a customer the option of purchasing goods or services "on account," you might want to define a credit limit. To do so, specify an amount in the customer master record.

To define a credit limit

On Customer Master Information

Complete the following fields:

  • Credit Manager (optional)

  • Last Credit Review Date

  • Credit Limit - The credit limit is the maximum negative balance that a customer is allowed.

39.2.1 What You Should Know About

A zero or blank amount is considered no credit allowed for the customer. If an unlimited credit limit is desired, the user can set a maximum limit by entering a large number, such as 999999999999999.

39.3 Defining Collection Information

Before you can send a customer a reminder about an overdue invoice or include a customer on a collection report, you must define collection information in the customer master record.

To define collection information

On Customer Master Information

Complete the following fields:

  • Collection Manager (optional)

  • Number of Reminders

  • Collection Report

39.4 Setting Up Category Codes for A/R


From Address Book (G01), enter 29

From Address Book Setup (G0141), choose Address Book Category Codes

Before you can review credit information for a customer, you must set up category codes 1 and 2 in the Address Book system. This enables you to define specific groups for online review and reporting purposes. For example, you might want to set up groups for:

  • All customers for a branch office (category code 1)

  • All customers associated with a specific account representative (category code 2)

To set up category codes for A/R

  1. Access the appropriate list of address book category codes.

    Figure 39-2 General User Defined Codes screen

    Description of Figure 39-2 follows
    Description of ''Figure 39-2 General User Defined Codes screen''

  2. Follow the steps to set up a user defined code.

39.5 Setting Up Credit Messages for A/R


From Accounts Receivable (G03), enter 29

From Accounts Receivable Setup (G0341), choose Valid Credit Messages

Before you assign a credit message to a customer, such as Over credit limit, you must set up the message. The message appears when you access the customer's address book record through any of the A/R programs. This could be through invoice processing, cash receipts, customer master and so on.

To set up credit messages for A/R

On Valid Credit Messages

Figure 39-3 Valid Credit Messages screen

Description of Figure 39-3 follows
Description of ''Figure 39-3 Valid Credit Messages screen''

  1. Follow the steps to set up a user defined code.