Customer Account Type

Complete

This screen is used to create/view/edit the details of the Customer Account Type lookups. You don't have to use Customer Account types, but doing so enables better financial management of debtors and provides a method of quickly identifying important groups of customers by using an alert.

The fields are as follows:

Name - the name of the Account Type
Credit Limit - not currently used by the system
Payment Terms and Payment Terms Units - define the period within which payment is expected and define how the Overdue Balance is calculated - see below. The units can be days, weeks or months.
Account Fee Type - can be set to None, Fixed, or Percentage. If not None, then when the End Period processing is done using Reporting|Debtors and statements are being generated, a check will be made to see if an overdue fee is applicable.
Fee Amount - this is either the fee amount (if the Fee Type is set to Fixed) or the percentage of the overdue balance (if the Fee Type is set to Percentage)
Minimum Fee - no fee is charged if the fee amount is less than this amount
Minimum Balance - no fee is charged if the overdue balance is less than this amount
Overdue Days - this defines how long a payment can be outstanding before it is considered to be overdue and thus liable for an Account Fee
Fee Message - if an Account Fee is charged, the Notes text of the generated Debit Adjustment transaction is set to this text, or if none has been entered, to "Account Fee". Note that because of a current bug, the text entered is ignored and the Notes text is always "Account Fee".
General Message, Overdue Message - these are displayed at the end of the statement. If payment is overdue, the Overdue message is printed, else the General message. Leave blank if you don't want a message to be displayed.
Active - uncheck the box to deactivate the the Account Type
Default Lookup - check the box to make this the default Customer Account Type - ie that set when a new customer is created.
Alert tab - here you can see an alert to be displayed in the left panel where the current customer has this Account Type.

 

Calculation Logic

To determine the current overdue balance:

  1. the payment terms (e.g 30 days) are subtracted from the current date
  2. any unpaid amounts dated prior to this new date are summed to get the overdue balance

The account fee is determined during statement generation.

A non-zero account fee will be returned if:

  • the customer has an account type;
  • there is a non-zero overdue balance for the account fee date (derived from the statement date - Overdue Days);
  • the overdue balance is >=Minimum Balance; and
  • the account fee is greater than Minimum Fee

The account fee is calculated as:

  • overdue balance * Fee Amount/100 if the Account Fee Type is PERCENTAGE; or
  • Fee Amount if the Account Fee Type is FIXED