Defining a Delinquency Policy

Access the Delinquency Policy Definition form.

Policy Name

Enter a name to specify the set of rules that determines when an invoice is considered past due and to specify the action to take. The policy contains aging information for notices and fee instructions. You set up a policy to represent a group of customers based on either their payment habits or on a line of business.

Although you can enter the policy name in upper- or lowercase letters, the system does not differentiate between them. For example, if you enter a policy named PREMIER, the system returns an error message for a duplicate key if you try to enter another policy named Premier.

Company

Enter the address book number of the company to which the policy applies.

Description

Enter a description of the policy.

Reset Temporary Credit Message

Select this option to reset the temporary credit message for a customer back to the original value that is specified on the customer master record if all of the customer's invoices are fully paid when you run the Credit Analysis Refresh program (R03B525).

If all of the invoices for the customer are fully paid (the customer has no open invoices), you must change the data selection for the program to include paid invoices (Pay Status is equal to P) or the system does not reset the value on the customer record.

Use Tiered Notification Policy

Select this option to use only the notification instructions that you set up to generate delinquency notices.

For example, a customer has a notification instruction that is set up for aging category 3 only, and currently has two open invoices: invoice 123 is not past due and invoice 234 is in aging category 4. If you select this option, the system does not generate a delinquency notice because neither invoice meets the criteria for aging category 3.

Using the same example, if you do not select his option, the system generates a delinquency notice because invoice 234 is aged past the number of days specified for aging category 3. The invoice does not have to meet the specific requirements; it just has to be past due for at least the number of days that is defined for aging category 3.

Note: When the system generates a delinquency notice, it prints all invoices that are past due, regardless of their aging category.