63 Overview to Statement and Reminder Processing

This chapter contains these topics:

Section 63.1, "Objectives"
Section 63.2, "About Statement and Reminder Processing"

63.1 Objectives

To update finance charges
To print finance charge invoices
To print statements
To print A/R invoices
To print delinquency notices and payment reminders

63.2 About Statement and Reminder Processing

Your organization might have different tasks for period-end processing including:

Recycling invoices
Posting A/R invoices and receipts
Reconciling A/R to G/L
Processing and printing statements
Processing payment reminders or delinquency notices

The Accounts Receivable system provides a wide range of features you can use to complete your period-end tasks.

Statement and reminder processing consists of:

Working with late payment charges
Printing statements
Printing A/R invoices
Working with past due notifications
Working with collection and reminder information

The following graphic illustrates the flow of statement and reminder processing.

Figure 63-1 Flow Statement and Reminder Process

Description of ''Figure 63-1 Flow Statement and Reminder Process''

63.2.1 Applying Late Payment Charges

In the process of billing your customers and collecting funds, it might be necessary to calculate additional charges on invoices. Two methods are available:

Calculate finance charges on unpaid invoices
Calculate interest invoices on payments that are late

63.2.2 Customizing Statement Messages

You might want to create a personalized message to appear on the statements you send to your customers. You can create a message for a specific customer or all customers in a company. For example, you can create a message for all of your customers that reads Thank you for your business. You can also set up a model message to use for several companies.

63.2.3 Printing Statements

You can print customized statements for the specific requirements of your customers, such as statements with:

Invoice detail
Current balance due
Outstanding balance due
Payments received
Account summary

You determine the aging that is used and the language that prints on the statement.

63.2.4 Printing Invoices

You can print invoices created through invoice entry and receipts entry, including items such as:

Chargeback invoices
Credit memos
Finance charge invoices
Interest invoices

63.2.5 Processing Past Due Notifications

When you have customers who are delinquent in paying, you can generate notices to remind customers that you expect payment. You can use two types of past due notifications:

Delinquency notices
Payment reminders

63.2.5.1 Delinquency Notices

You can generate notices to remind customers with delinquent accounts that you expect payment.

Three levels of delinquency notices are available, ranging from a friendly reminder to a more severe request. You can revise the text that appears on each level of the reminder or create alternate versions to send to specific customers. You control which customers receive which version.

You also determine the language in which the text prints on the delinquency notices.

63.2.5.2 Payment Reminders

Your company might choose to send payment reminders instead of delinquency notices. Creating payment reminders is part of the collection management process.

63.2.6 Processing Collection and Reminder Reports

When you consign delinquent customers or invoices to a collections agency, you might want to print reports containing delinquency information. You can print the following reports:

Reminder Report/Update
A/R Detail with Reminders