FINANCE AND CREDIT INFORMATION

Use this subtask to apply finance charges and set credit limits for specific customer accounts. You can also review a customer's accounts receivable information to determine the available credit and other balance information.

Set up the A/R Settings screen in Costpoint Accounts Receivable before using this subtask so that finance charges can be accrued before you apply finance charges to a customer's account. You must establish applicable credit limits before you enter sales orders.

Customer Account

These fields display the customer account and description from the main screen.

Finance and Credit Information

Apply Finance Charges

Select this checkbox to apply finance charges to this customer. You cannot select this checkbox if you did not select the Automatically Apply Finance Charges on Accounts checkbox in the A/R Settings screen in Costpoint Accounts Receivable. The system calculates finance charges by multiplying the number of days outstanding by the annual rate. The system then divides the results by 360 × the amount outstanding. In general, you should not select this checkbox for government agencies.

Number of Grace Days

This information defaults from the A/R Settings screen in Costpoint Accounts Receivable, but can be changed here. The system derives the number of grace days from the number of days past the due date that a customer is allowed to pay an account before finance charges are applied.

Annual Percent

This information defaults from the A/R Settings screen in Costpoint Accounts Receivable, but can be changed here. Change the Annual Percent only if you want to apply a different rate to this customer. The system divides the rate by 360 to determine a daily rate.

Credit Limit

Use this drop-down box to select a credit limit for this customer that reflects your company policy and procedures. If the available credit limits do not meet your company's criteria, you can set up additional credit limits in the Credit Limits screen in Costpoint Accounts Receivable. On printed customer statements, any amount over the credit limit will be included in the minimum monthly payment due.

Credit Number

If you use a credit rating service, enter the number that relates to this customer for that service. This field is optional and is not validated against other database information.

Credit Rating Code

Enter, or use the drop-down box to select, the credit rating code of this customer. Set up credit rating codes in the Credit Ratings screen in Costpoint Accounts Receivable. You may want to use the same rating codes that your rating service uses.

Rating Date

Enter the date on which the credit rating code became effective.

A/R Balance Information

Use this non-editable group box to view balance information.

Outstanding A/R Balance

The system updates this balance when you post accounts receivable or cash receipts.

Approved Order Balance

The system updates this balance when you approve sales orders or post sales order invoices in the Sales Order Entry journal.

Credit Remaining

The system derives this figure by adding the values in the Outstanding A/R Balance and Approved Order Balance fields and then subtracting that total from the Credit Limit.