Search for Reminder Terms.
If you leave the Max No of Reminders set to zero, the system will get to your last level and keep sending the final level reminder until they pay. If you want to stop after your 3rd reminder, you enter a 3 in this field.
Reminders don’t post to the GL unless you select these boxes on the terms screen shown here.
If this is set, the reminder will be treated just like an invoice and posted to the GL and customer ledger.
If this is not set, and the customer pays the fees, you will need to post the fees when posting the payment
You may set a minimum threshold as well. In this screenshot, if the amount is less than 2.00, we will not send a reminder.
Then you set the reminder levels within the reminder term
In this example:
Level 1 will be sent 5 days after the due date of the invoice
Level 2 will be sent 1 month after level 1 reminder is sent if the payment has not been received yet
Level 3 will be sent 1 month after level 2 reminder is sent if the payment has not been received yet
In this example, the Due Date calculation is when this reminder is due.
If invoice was due on April 1, the reminder will be sent on April 6th with a due date of 14 days.
Level 2 will not be sent until 1 month past April 20th.
Some other options are:
Additional fees. You can set an additional fee per line (meaning the invoice as a whole on the reminder). If the reminder has 1 invoice line, this fee would be applied 1x. If the reminder has 10 invoices on it, this will be applied 10x.
You can include a line description for each line fee.
The additional fee must be a percentage and begins to look like an interest calculation based on the amount overdue.
You will need to make sure the accounts are setup in the customer posting groups
Create the text for each level as shown below
You can enter Beginning and Ending text for your reminders
This is generic text to be used for all customers.
%7 will result in the total amount listed on the reminder
Additional codes that can be used when setting up reminder text are
Reminder terms need to be assigned to each customer
Creating Reminders:
This is what the customer will see
This shows the reminder level. Due dates of the reminder for additional fees AND the next level all use the Document Date for calculations.
Because we didn’t select these reminders to post to GL, you only get reminder entries
To send to the customer you must use the Issue process (similar to the posting process)
Enter how you want to issue the reminder
Once issued, you can find them in the issued reminders screen. Once issued, you cannot change the reminder. Once issued, the calculation begins for the next level.
If you remove lines from the reminder before issuing, you will need to run the UPDATE reminder text to recalculate your remit line (if you have the %7 set)
If you would like to jump to a different level of reminder, you can do that here as well (in the update reminder text)
You can add comments on the issued reminder to keep track internally
They can only be seen by going to the comments page from the reminder.
You can also add notes on the issued reminder.
Add your note:
Then it can be seen by opening the reminder.
Calculating interest on reminders
This setup allows you to calculate interest on reminders.
You will need to
In this instance, we ran a level 2 reminder. It separates the invoices that were on the first level and now on level 2 from the new invoices that are now overdue for a 1st level reminder.
They will always be included-system will not make 2 separate reminders.
Note: if you create the reminders and select USE HEADER LEVEL, it will calculate ALL based on the highest-level reminder on the invoices. In this example, level 2.
To view issued documents for one customer, you can get there from the customer card.
From the customer ledger entries, you can also see in the factbox how many reminders/finance charge documents were issued.
If you don’t want to include an invoice when you create reminders you can mark it as ON HOLD. It is only 3 characters so you could utilize users’ initials. This could be used if you are investigating an invoice for a customer.
When you create these documents, you could include the ON HOLD items if you choose to.