Daily Operations -- Customers

Click a link below to view the other sections in Receivables:

Return to the Daily Operations page here.

Decide on a Customer Type

    Classify your customers according to one of the types described in detail below and assign the "Customer type" when you configure customers. Use the Memorize function, by pressing the Memorize button at the bottom of the window, to carry over characteristics (such as type) from one customer to the next.

    Use Receivables/Configure/Customers

    Balance forward. A customer with an account type of Balance Forward pays by statement balance rather than by individual invoice. The customer statement shows current period transactions in detail. Aging receivables for the customer deletes the transaction detail and carries forward the account balance, which is the accumulation of all invoices, payments, and adjustments to the account. Customer payments are applied to the total balance due, beginning with the balance in the oldest aging period.

    Open item. A customer with an account type of Open Item pays by individual invoice rather than by balance due. Each customer invoice you enter persists in the system until paid in full. You specify the invoice(s) to which to apply a customer payment or apply the payment to all invoices. The payment is applied to finance charges first and then to open invoices, beginning with the oldest invoice.

    Revolving. A Revolving charge account customer is a balance-forward type customer who must make a minimum payment each period. The customer must pay at least the minimum dollar amount that you specify later in this window. You can use either the level method or the average daily balance method to calculate finance charges on revolving charge accounts.

    Fixed. A Fixed Payment customer is a balance forward-type customer who pays a fixed dollar amount each period until the balance is paid in full. Finance charges for Fixed Payment customers are assessed on the customer's outstanding balance minus current period activity and outstanding finance charges. You specify the fixed payment amount later in this window.

     

Use Billing Cycles

    Use Receivables/Configure/Billing Cycles

    To split up your customer list for billing at different times, set up as many Receivables processing periods as you need. For example, you can set up cycles "1Cycle 1-15" and "2Cycle 16-31" for billing half your customers on the 15th and half on the last day of the month. You must set up at least one billing cycle. If all your customers are processed and billed at the same time, you set up a single billing cycle and assign all customers to it.

    Use Receivables/Configure/Customers

    Assign a billing cycle to each customer from what you have set up. Then use the Billing Cycle Checklist (Receivables/Billing Cycle Checklist) to process customers. Use the window to:

    • Apply finance charges
    • Apply recurring charges
    • Print Statements
    • Age invoices

    The Checklist helps you remember to do all the processing in the recommended sequence and prevents you from doing any of the steps more than once per cycle.

Manage Finance Charges

    Use Receivables/Configure/Customers

    21st Century Accounting uses the Level Method to calculate finance charges for all open item, regular balance forward, and fixed payment customers. It also uses the Level Method for revolving customers unless you specify the Average Daily Balance Method for revolving customers.

    Assign customer types (open item, balance forward, revolving, or fixed payment), billing cycles, and finance charges

    1. The customer type (in conjunction with Finance Charge Configuration) determines how finance charges are applied.

    2. Assign a billing cycle to each customer from BCs you set up in Receivables/Configure/Billing Cycles.

    3. Check the "Apply finance charges" box for customers who will be charged FCs.

    4. Set up fixed payments and revolving payment minimums and rates for Fixed and Revolving type customers.

     

    Use Receivables/Configure/Finance Charges

    Then configure finance charge methods (level or average daily balance)

    1. In Configure/Finance Charges, set up Level Method minimum balance and rates for customers to whom this method will apply, if any.

    2. In Configure/Finance Charges, if you want to use Average Daily Balance method for Revolving-type customers, check the "Use ADB method (revolving customers only)" box and set up the minimum balance and rate.

     

    Use Sales/Invoices/Invoice Updates and Bank Accounts/Deposits

    During the course of the business cycle, enter transactions (charges, receipts, and adjustments) for all customers in each billing cycle. Then use the Billing Cycle Checklist to finish processing customers and complete the cycle.

Quckly look up a customer's account

    Use Receivables/Customer Status

    View a "snapshot" of a customer's charges, payments, and balance due. The customer status window shows invoice activity through the current 21st Century Accounting date. You can include paid invoices in the window by checking the "Show paid invoices" box in the Status window. Enter the customer ID or name and click the Preview button.

    Use Receivables/Customer Status and double-click invoice number

    Print hardcopies of posted sales invoices, credit memos, and debit memos from the Customer Status window. Double-click an invoice number in the Customer Status window to open the invoice in the Preview window. Then click the printer icon to print the invoice. Similar to printing posted invoices from the Invoice Journal Preview window, except you can print multiple invoices with fewer keystrokes from the Customer Status window.