Customer Credit Information—Key Exercises

Basic Data Setup

Message group

Purpose: The purpose of this exercise is to show you how to set up message groups to determine which messages will be sent to users connected to credit analysts/credit managers and customers.

Windows:
Message Groups

1. Create a new record.
2. Enter a message group and a message group description.  
3. Select a row in the lower table portion of the window and click New.

Note:  The seven system-defined messages are now displayed.

4. Select all messages by selecting the Send Message check box. Save the entry. These messages are now available to use.

Enter Credit Analyst

Purpose: The purpose of this exercise is to show you how to set up a credit analyst and connect it to a credit manager.

Windows:
Credit Management Basic Data

1. Populate the window. The system-defined credit analyst appears.

2. Create a new record, and enter the following:

3. Save this entry. 

Enter Credit Analyst User

Purpose: The purpose of this exercise is to show you how to attach a user to a credit analyst and  credit manager.

Windows:
Credit Management Basic Data

1. Click the Credit Analyst User tab. Populate the window.
2. Create a new record, and enter the following:

3. Save the entry.

Note:  Instead of entering values, you can use the List of Values.

View and Modify Aging Bucket

Purpose: The purpose of this exercise is to show you how to enter and view the specifications of aging buckets used in the aging analysis. An aging bucket shows the value of outstanding invoices/installments of a particular age.

Windows:
Credit Management Basic Data

1. Click the Aging Bucket tab. Populate the window.

Note:  You can now see six predefined aging buckets.

2. In the End Day field in Bucket 6, change the number of days from 360 to 500. Save your changes.
3. In the Aging Method field, use the List of Values to view the predefined aging methods.
4. Close without saving.
5. Repeat step 2 for Bucket 1. Enter –99 in the Start Day field, and 0 (zero) in the End Day field.
6. Repeat step 2 for Bucket 2. Change the value in the Start Day field to 1.

Note:  The idea with steps 5 and 6 is to have all not due invoices in bucket 1.

Enter Note Status

Purpose: The purpose of this exercise is to show you how to enter a new credit note status. This status is used on entry of the invoice header and invoice line notes.

Windows:
Credit Management Basic Data

1. Click the Notes Status tab. Populate the window.
2. Create a new record, and enter the following:

3. Save your changes.

Connect a Customer to a Credit Analyst

Purpose: The purpose of this exercise is to connect a customer to a credit analyst. This must be done before entering invoices on the customer. Otherwise, messages cannot be sent. 

Windows:
Customer

1. Query for your customer. Click the Credit Info tab.

2. Create a new record, and enter your company and credit analyst. Use the List of Values if necessary. The information in the Message Group field appears automatically when you enter the credit analyst.

3. Save your changes.

Invoice Exception Code

Purpose: The purpose of this exercise is to set up exception codes that can be used to exclude invoice lines from credit ratios such as DSO and aging analysis.

Windows:
Invoice Exception Codes

1. Create a new record.
2. Enter the following information:

3. Save your changes.

Required Data

Customer Invoice

Purpose: The purpose of this exercise is to enter customer invoices to be used in the exercises below.

1. Enter three invoices on your customer. Post and save the invoices. The first invoice is for the Exception Code exercise. The second and third invoices are used in the Credit Management Notes exercise.          
2. Enter three more invoices on your customer. Invoice Date, Delivery Date, and Voucher Date should be due for payment one month, two months, and three months back in time. These invoices are to be used in the follow-up exercises.

ManualCustomerInvoicingVAT

ManualCustomerInvoicingUSSalesTax

Main Exercises

Purpose: The purpose of this exercise is to attach Exception Codes to invoices, enter Credit Management notes for invoices and invoice lines, set follow-up date and calculate and view Customer Credit Information.

Attach Exception Code to Invoice

Exception Code

Purpose: The purpose of this exercise is to show you how to enter an exception code on a customer invoice line to indicate quality failure on delivery. The invoice will be excluded from the credit ratios.

Windows:
Customer Invoices Analysis

1. Populate the window. Select one of the invoices, right-click, and click Customer Invoice Details. 
2. Click the Lines tab, and move the cursor to the Invoice Exception Code field.
3. From the List of Values, select Invoice Exception Code QF for Quality Failure. Click Ok.
4. Save your changes.

Credit Management Note

Credit Management Notes on Invoice Header

Purpose: The purpose of this exercise is to enter notes in an invoice header. These notes can be used to record comments on the invoice,  such as the last contact with the customer or reasons for late payment.

Windows:
Customer Invoices Analysis

1. Query for your customer. You now see the invoices connected to the selected customer.
2. Select one invoice, right-click, and then click Customer Invoice Details.
3. Right-click anywhere in the Customer Invoice Analysis window and then click Credit Management Notes.
4. Create a new row.
5. Enter a number in the No column. Select the line, right-click, and click Note Text.
6. Enter any note that you feel is appropriate to describe the current credit situation for this customer and this invoice. Click OK to exit the note window.

Note:  The Text column has now a checked box indicating that notes exist for this invoice header. The follow-up date is used in follow-up and analysis.

7. Save your changes.

Credit Management Notes on Invoice Lines

Purpose: The purpose of this exercise is to enter notes on invoice lines. These notes can be used to add comments to certain invoice lines.

Windows:
Customer Invoices Analysis

1. Populate the window.
2. Select an invoice for your customer, right-click, and click Customer Invoice Details.
3. Click the Lines tab. Select the first line, right-click, and click Line Credit Management Notes.
4. Create a new line.
5. Enter a number in the No column. Then select the line, right-click, and click Line Note Text.
6. Enter any notes that you feel are appropriate to describe the current credit situation for this invoice line and customer. Click OK to close the note window.

Note:  The Text column has now a checked box that indicates that text notes exist for this invoice line. The follow-up date is used in follow-up and analysis.

7. Save your changes. 

Note:  Later you can double-click the checked box to enter, edit, or view your note connected to the invoice line note.

Credit Management Notes on Customer

Purpose: The purpose of this exercise is to enter notes on a customer. This is for companies that has many invoices per customer and want to enter notes in a more efficient way. The same functionality exist for Credit Managements Notes on Invoice Header and Credit Managements Notes on Invoice Lines.

Windows:
Customer

1. Open the window and select your customer.
2. Click the Credit Info tab. Right-click and then click Customer Credit Notes.
3. Create a new line.
4. Enter a number in the No column. Then select the line, right-click, and click Line Note Text.
5. Enter any notes that you feel are appropriate to describe the current credit situation for this customer. Click OK to close the note window.

Note:  The Text column has now a checked box that indicates that text notes exist for this invoice line. The follow-up date is used in follow-up and analysis.

7. Save your changes. 

Note:  Later you can double-click the checked box to enter, edit, or view the note connected to your customer.

Follow-up Date on Credit Management Notes

Purpose: The purpose of this exercise is to enter and change the follow-up date on credit management notes on the invoice header. This date is used to follow up on notices that have been attached to invoices. The follow-up date can also be used to send messages to credit analysts. It can be viewed in the Credit Message Analysis window in the IFS/Payment.

Windows:
Customer Invoices Analysis

1. Query for your customer.
2. Select the invoice with notes on the invoice header, right-click, and then click Customer Invoice Details.
3. Right-click anywhere in the Customer Invoice Analysis window and then click Credit Management Notes.
4. In the Follow-up Date field, enter a date two weeks from today.
5. Save your changes.

Note:  You have now changed the follow-up date on this invoice header note.

Update Customer Credit Information

Update Follow-up Message

Purpose: The purpose of this exercise is to update follow-up messages. This information is used for follow-up and analysis. 

Windows:
Update Follow Up Messages

1. Under Follow-up Date, enter today's date in the From field and the last date of this year in the To field.  
2. Click Run to begin the update.

Note:  Follow-up notes are now updated and can be viewed in the Credit Message Analysis window. See Follow-up and Analysis exercise below.

Calculate Customer Credit Information

Purpose: The purpose of this exercise is to update customer credit information. The updated information is used in the follow-up and analysis of customer credit information. 

Windows:
Calculate Customer Credit Information

1. In both the From Credit Analyst and To Credit Analyst fields, enter your credit analyst identity, or select this value from the List of Values.
2. Click OK to confirm.

Note:  The credit information is now updated.

Follow-up and Analysis

Customer Credit Overview

Purpose: The purpose of this exercise is to show you how to get an overview of the customer's credit situation. You can view credit and collection information for all your customers. This query is usually the starting point for a credit review. It is also possible to reach Customer Credit Note and Customer Basic Data from this window.

Windows:
Customer Credit Analysis

1. Populate the window.

2. Note that this window contains credit information concerning credit analysts, corporate credit relations, total sales, accounts receivable turnovers, days sales outstanding, aging buckets, customer notes and other payer.

3. Right-click and click Customer Credit Notes. Here you can enter notes that is specific for this customer. Close the window.

4. Right-click again and click Customer. The Customer Basic Data window appears with the customer information.

DSO Graph

Purpose: The purpose of this exercise is to view key performance indicators of accounts receivable turnover and days sales outstanding (DSO). DSO values are displayed graphically.

Windows:
Customer Credit Analysis

1. Populate the window.

2. Select your customer, right-click, and click DSO Graph.

Note:  Now you can view accounts receivable turnover key performance indicator and DSO key performance indicator, both numerically and graphically. 

Query – Customer Aging

Purpose: The purpose of this exercise is to show you how to view open  customer invoices/installments, divided into aging buckets. Aging method and interval in the six aging buckets are specified on the Credit Information Basic Data/Aging Bucket tab.

Windows:
Customer Credit Analysis

1. Query for your customer.

2. Select your customer, right-click, and then click Query Customer Aging.

3. Right-click again to select the graph.

4. Click on one of the pie slices. This will open the Customer Invoice Analysis window showing the ledger items included in that specific aging bucket. 

Query – Customer Details

Purpose: The purpose of this exercise is to show you how to view information about invoices and payments for one customer. The customer balance and amount due are displayed.

Windows:
Customer Credit Analysis

1. Populate the window.

2. Select your customer, right-click, and click Query Customer Details.

Query – Customer Invoices

Purpose: The purpose of this exercise is to show you how to view information about invoices for one or more customers.

Windows:
Customer Credit Analysis

1. Populate the window.

2. Select your customer, right-click, and click Query Customer Invoices.

Credit Notes

Invoice Header Credit Notes

Purpose: The purpose of this exercise is to show you how to view and update the notes attached to an invoice header.

Windows:
Invoice Header Credit Notes Analysis

1. Populate the window. You now see all invoices for the customer, with header credit notes.

2. Select one invoice, right-click, and click Note Text to view the notes that have been entered.

3. Close the window.

4. Select the same line again, right-click, and click Edit Invoice Header Credit Notes.

5. Select the line, right-click, and click Note Text. Edit your note, and click OK to confirm.

6. Place the cursor in the Follow-up Date field. Enter a date 10 days from today.

7. Save your changes.

Note:  New information has been added to the invoice, and a new follow-up date has been entered for the next reviewing date.

Invoice Lines Credit Notes

Purpose: The purpose of this exercise is to show you how to view and update the notes that have been entered on invoice lines.

Windows:
Invoice Header Credit Notes Analysis

1. Populate the window.
2. Select one invoice line, right-click, and click Line Note Text to view the notes that have been entered.
3. Close the window.
4. Select the same line again, right-click, and click Edit Line Notes.
5. Select the line, right-click, and click Line Note Text. Edit your note, and click OK to confirm.
6. In the Follow-up Date field, and enter a date one month from today.
7. Save your changes.

Note:  New information has been added to the invoice line, and a new follow-up date has been entered for the next reviewing date.

Customer Credit Notes

Purpose: The purpose of this exercise is to show you how to view and update the notes that have been entered on your customer.

Windows:
Invoice Header Credit Notes Analysis

1. Populate the window.
2. Select your customer, right-click and click Note Text to view the notes that have been entered.
3. Close the window.
4. Select the same line again, right-click and click Edit Notes.
5. Select the line, right-click and click Note Text. Edit your note, and click OK to confirm.
6. In the Follow-up Date field, enter a date one month from today.
7. Save your changes.

Note:  New information has been added on your customer, and a new follow-up date has been entered for the next reviewing date.

Follow-up Messages

Purpose: The purpose of this exercise is to show you how to view messages sent to credit analysts when the Update Follow-up Messages activity is performed and to view Customer Credit information. Messages are sent according to the setup in the Credit Information Basic Data window. 

Windows:
Credit Message Analysis

1. Open the window and populate.

2. You can now view messages connected to your user.

3. Right-click and click Customer Credit Overview. The window is populated with the customers that were high lighted in the Credit Message Analysis window.

Basic Data Setup

Purpose: The purpose of the following exercises is to enter the basic data to calculate interest on overdue invoices when they are due for payment.

Create Interest Template

Purpose: The purpose of this exercise is to define an interest template that facilitates interest to be calculated for customer invoices when they are due for payment.

Windows:
Interest Templates

1. Open the Interest Templates window and create a new record.

2. Enter 3 in the Interest Template field and When Due for Payment in the Description field. Select the Calculate Interest check box and save.

3. In the Interest Invoicing when Due/Paid tab, enter the following information.

4. Save the information.

Connect Interest Template to Customer

Purpose: The purpose of this exercise is to connect the interest template that enables interest to be calculated when invoices are due for payment, to the customer that you want to use for this exercise.

Windows:
Customer

1. Open the Customer window and query for the customer you want to use in this exercise.
2. Select the interest template 3 for the Interest Template field in the Payment tab.
3. Save the information.

Required Data

Enter Customer Invoice

Purpose: The purpose of this exercise is to enter the customer invoices that will be used in the exercises below.

Windows:
Manual Customer Invoice

1. Enter three invoices for your customer with the following details.

General Exercises for Manual Customer Invoicing using VAT
General Exercises for Manual Customer Invoicing using Sales Tax

Manual Customer Payment

Purpose: The purpose of this exercise is to make a full payment for one invoice created in exercise Enter Customer Invoice and a partial payment for another. As a result, you will be able to compare the difference in the interest calculated depending on whether the invoice is fully paid, partially paid or unpaid on the date interest is calculated, when carrying out the exercises below.

Windows:
Customer Payment

Enter and approve a payment of 10,000 for invoice number INT1 and a payment of 5,000 for invoice number INT2. The payment date should be 2008-01-06.

General Exercises for Manual Customer Payment

Main Exercise

Purpose: The purpose of this exercise is to understand the approach used to calculate interest for overdue invoices when the interest method used is WhenDueForPayment.

Three invoices with the same invoice amount and due date were created in Required Data exercises. One invoice was paid in full after five days, another was partly paid on the same date and the other invoice was left unpaid. As a result, you would be able to see how the interest amount calculated for each invoice will be different based on the due amount on the date on which the interest proposal is created.

Create Interest Proposal

Purpose: The purpose of this exercise is to show how overdue invoices with the same due date and different due amounts would be handled in an interest proposal when the interest method used is WhenDueForPayment.

Windows:
Customer Interest Proposals

1. Open the Customer Interest Proposals window. Right-click in the background of the window, and then click Create Proposal to open the Create Interest Proposal dialog box.
2. Enter 3 in the Interest Template field and the date 2008-01-11 in the Interest Calc Date field.
3. Enter the customer ID to which you connected interest template 3 in both From Customer and To Customer fields.
4. Click OK. The interest proposal will be displayed in theCustomer Interest Proposals with status Created.
5. Select the interest proposal, right-click and click Interest Proposal Details to open the Interest Proposal Details window. The payer of the customer you included in the interest proposal will be displayed.
6. Select the record in the Interest Proposal Details window, right-click and click Invoices per Payer to open the Invoices per Payer window. The three invoices you entered in exercise Enter Customer Invoice will be displayed.
7. Select invoice INT1, right-click and then click Interest Calculation per Invoice, to open the Interest Calculation per Invoice window. The following information will be displayed.

The  interest based amount of 10,000 was multiplied by the interest rate of 10%, then divided by 365, and multiplied by 5 (the number of days for interest rate) to arrive at the interest rate of 13.70.

View the interest calculation information for invoices INT2 and INT3 using the Interest Calculation per Invoice right mouse button option.

The following information will be displayed for INT2.

The following information will be displayed for INT3.

8. Acknowledge the interest proposal as shown in exercise Acknowledge Interest Proposal.
9. Print the interest invoice and notes as shown in exercise Print Interest Invoice/Notes.

Basic Data Setup

Purpose: The purpose of this exercise is to enter basic data to calculate interest on overdue invoices when they are partly paid.

Create Interest Template

Purpose: The purpose of this exercise is to define an interest template that facilitates interest to be calculated for customer invoices when they are partly paid. This may include Fully Paid invoices as well.

Windows:
Interest Templates

1. Open the Interest Templates window and create a new record.

2. Enter 4 in the Interest Template field and When Partly Paid in the Description field. Select the Calculate Interest check box and save.

3. In the Interest Invoicing when Due/Paid tab, enter the following information.

4. Save the information.

Connect Interest Template to Customer

Purpose: The purpose of this exercise is to connect the interest template that enables interest to be calculated when invoices are partly paid, to the customer that you want to use for this exercise.

Windows:
Customer

Connect interest template 4 to your customer.

Link to Connect Interest Template to Customer

Required Data

Enter Customer Invoice

Purpose: The purpose of this exercise is to enter the customer invoices that will be used in the exercises below.

Windows:
Manual Customer Invoice

Enter three invoices for your customer with the following details.

General Exercises for Manual Customer Invoicing using VAT
General Exercises for Manual Customer Invoicing using Sales Tax

Manual Customer Payment

Purpose: The purpose of this exercise is to make a full payment for one invoice created in exercise Enter Customer Invoice and a partial payment for another. As a result, you will be able to compare the difference in the interest calculated depending on whether the invoice is fully paid, partially paid or unpaid on the date interest is calculated, when carrying out the exercises below.

Windows:
Customer Payment

Enter and approve a payment of 10,000 for invoice number INT4 and a payment of 5,000 for invoice number INT5. The payment date should be 2008-01-06.

General Exercises for Manual Customer Payment

Main Exercise

Purpose: The purpose of this exercise is to understand the approach used to calculate interest for overdue invoices when the interest method used is WhenPartlyPaid.

Three invoices with the same invoice amount and due date were created in Required Data exercises above. One invoice was paid in full after five days, another was partly paid on the same date and the other invoice was left unpaid. As a result, you would be able to see how the interest amount calculated for each invoice will be different based on the due amount on the date on which the interest proposal is created.

Create Interest Proposal

Purpose: The purpose of this exercise is to show how overdue invoices with the same due date and different due amounts would be handled in an interest proposal when the interest method used is WhenPartlyPaid.

Windows:
Customer Interest Proposals

1. Open the Customer Interest Proposals window. Right-click in the background of the window, and then click Create Proposal to open the Create Interest Proposal dialog box.
2. Enter 4 in the Interest Template field and the date 2008-01-11 in the Interest Calc Date field.
3. Enter the customer ID to which you connected interest template 4 in both From Customer and To Customer fields.
4. Click OK. The interest proposal will be displayed in the Customer Interest Proposals with status Created.
5. Select the interest proposal, right-click and click Interest Proposal Details to open the Interest Proposal Details window. The payer of the customer you included in the interest proposal will be displayed.
6. Select the record in the Interest Proposal Details window, right-click and click Invoices per Payer to open the Invoices per Payer window. Note that invoice INT6 is not included in the interest proposal. This is because no payment is made for this invoice and the interest method used in this exercise (i.e. WhenPartlyPaid) involves calculating interest for overdue invoices based on the amount paid.
7. To view the interest calculation information for each invoice, select the invoice in the Invoices per Payer window, right-click and then click Interest Calculation per Invoice, to open the Interest Calculation per Invoice window. The information displayed for invoices INT4 and INT5 would be as follows.

The  interest based amount of 10,000 was multiplied by the interest rate of 10%, then divided by 365, and multiplied by 5 (the number of days for interest rate) to arrive at the interest rate of 13.70 for invoice number INT4.

The  interest based amount of 5,000 was multiplied by the interest rate of 10%, then divided by 365, and multiplied by 5 (the number of days for interest rate) to arrive at the interest rate of 6.85 for invoice number INT5.

8. Acknowledge the interest proposal as shown in exercise Acknowledge Interest Proposal.
9. Print the interest invoice and notes as shown in exercise Print Interest Invoice/Notes.

Basic Data Setup

Purpose: The purpose of this exercise is to enter basic data to calculate interest on overdue invoices when they are fully paid.

Create Interest Template

Purpose: The purpose of this exercise is to define an interest template that facilitates interest to be calculated for customer invoices when they are fully paid.

Windows:
Interest Templates

1. Open the Interest Templates window and create a new record.

2. Enter 5 in the Interest Template field and When Fully Paid in the Description field. Select the Calculate Interest check box and save.

3. In the Interest Invoicing when Due/Paid tab, enter the following information.

4. Save the information.

Connect Interest Template to Customer

Purpose: The purpose of this exercise is to connect the interest template that enables interest to be calculated when invoices are fully paid, to the customer that you want to use for this exercise.

Windows:
Customer

Connect interest template 5 to your customer.

Link to Connect Interest Template to Customer

Required Data

Enter Customer Invoice

Purpose: The purpose of this exercise is to enter the customer invoices that will be used in the exercises below.

Windows:
Manual Customer Invoice

Enter three invoices for your customer with the following details.

General Exercises for Manual Customer Invoicing using VAT
General Exercises for Manual Customer Invoicing using Sales Tax

Manual Customer Payment

Purpose: The purpose of this exercise is to make a full payment for one invoice created in exercise Enter Customer Invoice and a partial payment for another. As a result, you will be able to compare the difference in the interest calculated depending on whether the invoice is fully paid, partially paid or unpaid on the date interest is calculated, when carrying out the exercises below.

Windows:
Customer Payment

Enter and approve a payment of 10,000 for invoice number INT7 and a payment of 5,000 for invoice number INT8. The payment date should be 2008-01-06.

General Exercises for Manual Customer Payment

Main Exercise

Purpose: The purpose of this exercise is to understand the approach used to calculate interest for overdue invoices when the interest method used is WhenFullyPaid.

Three invoices with the same invoice amount and due date were created in Required Data exercises above. One invoice was paid in full after five days, another was partly paid on the same date and the other invoice was left unpaid. As a result, you would be able to see how the interest amount calculated for each invoice will be different based on the due amount on the date on which the interest proposal is created.

Create Interest Proposal

Purpose: The purpose of this exercise is to show how overdue invoices with the same due date and different due amounts would be handled in an interest proposal when the interest method used is WhenFullyPaid.

Windows:
Customer Interest Proposals

1. Open the Customer Interest Proposals window. Right-click in the background of the window, and then click Create Proposal to open the Create Interest Proposal dialog box.
2. Enter 5 in the Interest Template field and the date 2008-01-11 in the Interest Calc Date field.
3. Enter the customer ID to which you connected interest template 5 in both From Customer and To Customer fields.
4. Click OK. The interest proposal will be displayed in theCustomer Interest Proposals with status Created.
5. Select the interest proposal, right-click and click Interest Proposal Details to open the Interest Proposal Details window. The payer of the customer you included in the interest proposal will be displayed.
6. Select the record in the Interest Proposal Details window, right-click and click Invoices per Payer to open the Invoices per Payer window. Note that only the invoice number INT7 is included in the interest proposal. This is because the interest method of the interest template you used (i.e. WhenFullyPaid), involves calculating interest for an overdue invoice only when it is fully paid, and out of the invoices entered for the customer, only invoice number INT7 was fully paid.
7. Select the invoice in the Invoices per Payer window, right-click and click Interest Calculation per Invoice, to open the Interest Calculation per Invoice window. The following information will be displayed for invoice number INT7.

The  interest based amount of 10,000 was multiplied by the interest rate of 10%, then divided by 365, and multiplied by 5 (the number of days for interest rate) to arrive at the interest rate of 13.70.

8. Acknowledge the interest proposal as shown in exercise Acknowledge Interest Proposal.
9. Print the interest invoice and notes as shown in exercise Print Interest Invoice/Notes.

Basic Data Setup

Purpose: The purpose of this exercise is to enter basic data that would enable interest with fine to be calculated for overdue customer invoices..

Enter Interest Template

Purpose: The purpose of this exercise is to create an interest template that can be used to calculate interest and fine on overdue customer invoices.

Windows:
Interest Templates

1. Open the Interest Templates window and create a new record.

2. Enter 6 in the Interest Template field and Fine on Overdue Customer Invoices in the Description field.

3. Select the Calculate Interest check box.

4. Open the Interest and Fine at Payment tab.

5. Select Simple Interest for the Interest Calculation Method field.

6. Enter 10.00% in the Interest Rate per Month field and 5.00% in the Fine Rate field.

7. Save the interest template.

Connect Interest Template to Customer

Purpose: The purpose of this exercise is to connect the interest template that enables interest and fine to be calculated for overdue invoices, to the customer that you want to use for this exercise.

Windows:
Customer

Connect interest template 6 to you customer.

Link to Connect Interest Template to Customer

Required Data

Enter Customer Invoice

Purpose: The purpose of this exercise is to enter a customer invoice that will be used in the exercises below.

Windows:
Manual Customer Invoice

Enter a customer invoice with the following details.

General Exercises for Manual Customer Invoicing using VAT
General Exercises for Manual Customer Invoicing using Sales Tax

Main Exercise

Purpose: The purpose of this exercise is to show how interest and fine is calculated for an overdue customer invoice based on the information entered  in the interest template.

Windows:
Mixed Payment

1. Open the Mixed Payment window and create a new record in the General tab.

2. Select BANK from the List of Values for the Cash Account field.

3. Enter the payment date as 2008-01-06 in the Payment Date field.

4. Select Detailed from the list for the Balance Method field.

5. Open the Transactions tab and enter a transaction line as follows.

6. Save the transaction line.
7. Select the transaction line, right-click and then click Match Payment. The Matching dialog box will open. Note that an interest amount of 166.67 and a fine amount of 500 has been calculated for invoice number FINE1.
   
   By entering the payment date as 2008-01-06, invoice FINE1 was paid five days after the due date. The interest amount for five days was calculated by multiplying the invoice value of 10,000 by the monthly, interest rate of 10%, dividing it by 30 and then multiplying it again by 5.
   
   The fine amount of 500 is calculated by applying the fine rate of 5% to the invoice value of 10,000.
    
8. Click OK to close the Matching dialog box.
9. Right-click in the header of the Mixed Payment window, and click Approve to approve the mixed payment.