There are two options in BMS for assessing Service Charges to Customer's with terms, or where the balance owed is not collected on or before installation. Please review both and decide which will work best for your company.
#1.) Print Finance Charge on Invoice- this Branch Control 1 option allows you to set customer percentage terms by Branch that will appear at the bottom of each Invoice, however this is for display only, as nothing reports to the General Ledger or A/R. To enable this control, set it to “Y” for yes. The system will then prompt a default percentage amount. Type an applicable percentage amount, and then save the change to activate. On all new Invoices for the Branch, you will see the following Service Charge data:
If a Customer honors the Service Charge, you will need to adjust for the additional payment amount in Post Customer Payments.
#2.) Turn on Service Charges by Customer in Customer Maintenance. Once this is done, you will run the Service Charge Processing module once a month, or when you decide, to asses Service Charges and make them part of the Customer's A/R due, which will also automatically hit the G/L. If they aren't collected, you will need to go through the process of writing them off.
Option 1 is for "We hope we get some of them", Option 2 is for "we are going to get most of these." With option 1 you take it as a negative discount if they pay and it is lower maintenance. Option 2 there is a regular process to run and there will be some back end cleaning up of uncollected service charges.
#1.) Print Finance Charge on Invoice- this Branch Control 1 option allows you to set customer percentage terms by Branch that will appear at the bottom of each Invoice, however this is for display only, as nothing reports to the General Ledger or A/R. To enable this control, set it to “Y” for yes. The system will then prompt a default percentage amount. Type an applicable percentage amount, and then save the change to activate. On all new Invoices for the Branch, you will see the following Service Charge data:
If a Customer honors the Service Charge, you will need to adjust for the additional payment amount in Post Customer Payments.
#2.) Turn on Service Charges by Customer in Customer Maintenance. Once this is done, you will run the Service Charge Processing module once a month, or when you decide, to asses Service Charges and make them part of the Customer's A/R due, which will also automatically hit the G/L. If they aren't collected, you will need to go through the process of writing them off.
Option 1 is for "We hope we get some of them", Option 2 is for "we are going to get most of these." With option 1 you take it as a negative discount if they pay and it is lower maintenance. Option 2 there is a regular process to run and there will be some back end cleaning up of uncollected service charges.