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Chapter 7: Customer Account Statement, Collection Letter and Interest

7-1

CHAPTER 7: CUSTOMER ACCOUNT STATEMENT,COLLECTION LETTER AND INTEREST

ObjectivesThe objectives are

• Print customer statements

• Set up and create collection letters

• Process collection letters

• Set up interest codes

• Calculate interest

IntroductionAlthough most customers pay their invoices on time, you must be able to process

invoices that are not paid by their due date.

This course describes how to set up and process customers statements, collection

letters, and interest notes to help in the collection process.

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Financials II in Microsoft Dynamics® AX 2009

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Customer Account Statement

Customer account statements are documents that you can send to your customers

to notify a customer of their balance due and transactional activity for a period.

The currency and language for the customer are shown on the account statement.

If the account statement includes more than one currency, an opening balance

and a closing balance display for each currency.

A centralized statement is a combined customer statement sent from one

company that includes transactional data from one or more selected companies. If

your organization uses centralized statements, ensure that you are using the

statement company before you print statements. Information about a customer's

account activity in other companies is included on the statement if the companies

use the same global address book ID for that customer account. The transactions

for each company are grouped together on the statement.

Scenario

Phyllis, the Accounting Manager at Contoso, contacts Arnie, the Accounts

Receivable Administrator, and asks him to create a monthly customer statement

for all customers who have a balance other than zero in Contoso Entertainment

USA (CEU). She wants to send a single customer statement to all customers who

are shared across CEU and Contoso Entertainment Europe (CEE).

Procedure: Print a Customer Account Statement - Criteria

Follow these steps to define criteria to print a customer account statement.

1. Click Accounts receivable, click Reports, click External, and thenclick Customer account statement.

2. Select the starting date of transactions to include on the statement inthe From date field. By default, the opening balance for each

currency in the From date field displays on the report.

3. Select the ending date of transactions to include on the statement inthe To date field. By default, the closing balance for each currency

in the To date field displays on the report.

4. Select the Only open check box to print only transactions that areunsettled.

5. Select the Include reversed check box to include reversedtransactions.

6. In the Giro money transfer slip on interest note field, select thetype of giro money transfer slip to print, or select None. If you are

printing centralized statements, a giro money transfer slip prints only

if the currency code of all the transactions printed on the statement is

the same as the currency code of the statement company.

7. Select the Balance other than zero check box to exclude statementswith a closing balance of zero.

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8. Select the Giro with sum check box to print the giro money transferslip selected in the Giro money transfer slip on interest note field

on the Setup tab in the Customers form. The amount is printed on

the giro money transfer slip only if this check box is selected and the

company currency is used.

9. If the Show payment schedule check box is selected, the paymentschedule installments print in detail. If the check box is cleared and a

payment schedule exists, the text Multiple lists as the due date.

10. Select the Show credit limit check box if a credit limit is assigned toa customer and you want the credit limit displayed on the statement.

11. In the Show due until field, select a date to include informationabout transactions that are due as of that date in a separate section of

the statement. For example, you can use this to include the amount,

transactions, and date due for the next payment with the statement.

FIGURE 7.1 CUSTOMER - EXTERNAL ACCOUNT STATEMENT FORM

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Procedure: Print a Customer Account Statement -Maturity Distribution

Follow these steps to display information at the bottom of the statement about the

maturity distribution of the balance.

HINT : To enable fields in this area, first enter dates in the From date and To

date fields.

1. In the Maturity distribution area of the Customer - externalaccount statement form, select the Show maturity distribution

check box to print the maturity distribution at the bottom of the

statement.

2. Select from the following options how the maturity distributioncalculates:

o

Aging buckets - shows the maturity distribution according toaging buckets that you have defined for your company

o Manual setup of maturity distribution - shows the maturitydistribution according to period intervals that you define

Follow these steps to further configure the maturity distribution if the Aging

buckets option is selected.

1. In the Aging buckets field, select an aging bucket. Aging bucketswith more than six columns do not appear in the selection list, and

therefore, cannot be included on a printed statement.

2. In the Print bucket description field, select whether to include

aging bucket descriptions at the top of each aging bucket column onthe report.

Follow these steps to further configure the maturity distribution if the Manual

setup of maturity distribution option is selected.

1. In the Interval field, define the period to use by entering the numberof the day or month units in each period that is selected in the

Day/Mth field.

2. Select either day or month in the Day/Mth field.

3. Select whether to print summarized information for past or future periods, in relation to the date selected in the To date field.

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Procedure: Print a Customer Account Statement -Centralized Statement

Follow these steps to print centralized statements.

1. From the Customer - external account statement form, click theSelect button.

2. Click the Company Range tab.

3. Click the Selected check box next to the companies to include in thestatement or click the Select All check box to include all companies.

Only companies the user has security access to will appear in the list.

4. Click OK .

FIGURE 7.2 CUSTOMER - EXTERNAL ACCOUNT STATEMENT FORM,COMPANY RANGE TAB

NOTE : The external account statement will print in the language of the statement customer when the customer exists in the statement company. When the

customer is not in the statement company, the language of the customer in the

first company sorted alphabetically will be used.

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Test Your Knowledge

1. What is a centralized statement?

Set Up Collection Letters

When a customer does not pay an invoice, a company, depending on its company

policy, usually sends a collection letter. Additionally, the company can connect a

fee to charge on each collection letter, with the fee added to the customer's

collection letter balance.

• A choice exists in the kind of collection letter sent usually,depending on how late the customer is in their payments.

• A collection letter has a standard layout that you can modify only inthe Application Object Tree (AOT). However, there is an option to

set up specific notes to print on a collection letter in a specific

sequence.

Whether the preference is for only one collection letter procedure for allcustomers or several different collection procedures, Microsoft Dynamics® AX

2009 can handle both. Decide which steps to include for each collection

procedure, for example, whether a fee is charged to the customer, how many days

of grace allowed, and what the minimum due is for each collection letter. Ensure

that you specify the rules for interest calculation and posting.

Procedure: Add Text on Collection Letters

Follow these steps to add text to collection letters.

1. Click Accounts receivable, click Setup, click Forms, and then clickForm Notes.

2. Press CTRL+N to add a new record.

3. In the Form list, select the Form to add text to. Select from five predefined collection letters. You can read more information about

how to select and sequence these letters later in this course.

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4. In the Language list, select the language available for this letter. Ifmore than one language is set up for a form, the text prints based on

the customer's language set up on the Customer form.

5. Click the Text tab and type the note to appear on the collectionletter. The text entered can be overridden when you set up a

collection letter sequence.

FIGURE 7.3 FORM NOTES FORM

Collection Letter Sequences

Collection letters work sequentially, this means a collection letter 2 (two) cannot

print for a customer unless a collection letter 1 (one) has already printed.

Additionally, the selection in the parameters determines which letter is sent to the

customer. This does not mean all the predefined collection letters must be used.

For example, a collection letter sequence could have one of the following

structures.

Sequence 1 Sequence 2 Sequence 3 Sequence 4

Collection letter1Collection letter2

Collection

Collection letter1

Collection letter2Collection letter3

Collection letter4Collection

Collection letter1

Collection letter2

Collection letter1

Collection

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Procedure: Set Up Collection Letter Sequence

After adding text to the collection letters, define the collection letter sequence. In

the Collection letter form, you can set up the number of collection letters, the

timeframe, fees, and so on.

A company can decide to set up more than one sequence. For example, you can

set up a different sequence for different kinds of customers. The collection letter

sequence is defined by the posting profile being used for a customer.

Follow these steps to set up collection letter sequences.

1. Click Accounts receivable, click Setup, click Interest andcollection letter, and then click Collection letter.

2. Press CTRL+N to create a new record in the upper part of the form.This is where the new collection letter sequence is created. Use the

lines at the bottom of the form to define the sequence.

3. Enter a code for the sequence in the Collection letter sequence fieldand enter a Description.

4. In the Terms of payment list, select a method of payment to attach a payment method to the collection letter.

FIGURE 7.4 COLLECTION LETTER FORM

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Procedure: Define Collection Letter Sequence

As soon as you create the collection letter sequence, follow these steps to define

the collection letter sequence.

1. Move to the lower part of the Collection letter form.

2. Press CTRL+N to create a new record.

3. Select a Collection letter code.

4. Enter a Description of the code. This is for reference only.

5. Enter the amount and the fee being charged in Currency. Thisdefaults to the company currency. Select the Ledger account and

Amount of the fee and an Item sales tax group for calculating tax

on the fee.

NOTE : Only customers who have this currency code are marked up with the fee

specified in the Fee in currency field. You can have several lines with the same

collection letter code and different currency codes. The fee calculates in the

specified currency and the transactions list in the original currency in the

collection letter.

6. Enter a Minimum amount if the invoice is under a certain amountand you are not sending a collection letter.

7. Enter the number of Days past the invoice due date the payment hasto be late before the system sends the collection letter.

NOTE : The date for Collection letter 1 is in relation to the due date on the

invoice. Collection letter 2 and up are in relation to the setup in the Accounts

receivable parameters form.

8. Check Block to block any additional sales transactions to thecustomer as soon as this stage of collection is reached. The collectionletter sequence can continue, but the block must be removed

manually from the customer record.

Procedure: Add Collection Letter Notes

Follow these steps to add or edit notes for a collection letter.

1. From the Collection letter form, click the Note tab.2. Enter a note that is used only for this sequence. Any writing or

messages entered on the Note tab appears at the bottom of the

collection letter and overrides the note usually associated with the

letter if it is set up in the Form notes form.

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Procedure: Attach Sequences to Posting Profiles

Customers are linked to collection letter sequences indirectly through posting

profiles. Do not specify collection letter sequences directly on the customer;

assign codes to a posting profile. Follow these steps to attach sequences to

posting profiles.

1. Click Accounts Receivable, click Setup, and then click Postingprofiles.

2. Select the posting profile to edit, and then click the Tablerestrictions tab.

3. Specify whether collection letter notes should be created for this posting profile by selecting the Collection letter check box.

4. On the Setup tab, specify which collection letter sequence should beused. You can specify it for:

o One customer

o A customer groupo All customers

Therefore, you can select a different setup for different customers, or groups of

customers on the same posting profile.

FIGURE 7.5 CUSTOMER POSTING PROFILE FORM, SETUP TAB

Procedure: Set Up Accounts Receivable Parameters

The last step is to set up the Accounts Receivable parameter specific to collection

letters. Follow these steps to set up Accounts Receivable parameters.

1. Click Accounts Receivable, click Setup, and then clickParameters.

2. Click the Interest and collection letter tab.

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3. In the Update collection letter code list, select when thecollectionletter sequence is updated to the next step. The update

collection letter code determines which letter is sent to a customer

when multiple invoices with multiple aging enter the collection

process. Select from the following:

o Posting for one letter to be created for all past-due items

o Printout for a separate letter of each aging group

Consider the following example.

Example 1: The Update collection letter code is set to Printout. A customer has

two invoices due on the execution date.

Voucher Amount

1000 1000 USD

1001 2000 USD

A Collection letter job is executed with the parameter All. This results in one

collection letter with two postings for collection letter 1. Then the collection

letter is printed (and not posted).

Now, assume the customer has a new invoice due.

Voucher Amount

1002 4000 USD

Again, a Collection letter job is executed with the new voucher 1002, and one

collection letter 2 with 2 postings with voucher 1000 and 1001.

If the previous parameter is set to Posted, the second collection letter job results

in one collection letter 1 with 3 postings.

Test Your Knowledge

1. Name five things that can be set up in the Collection letter form.

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Lab 7.1 - Set Up a Collection Letter

Scenario

Connie, the Credit and Collections Manager at Contoso, has decided to create a

new collection letter to remind customers of past due accounts.

The collection letter will have these details:

• Only 2 collection letters will be sent to the customers. One letter is areminder, and the second is a final letter informing them they are

being sent to a collection agency.

• Use the Miscellaneous Charges account for the collection lettersequence.

• Do not charge taxes on the collection letters.

• Charge customers 25 USD (U.S. Dollars) for the initial collectionletter. Send this regardless of the customer's past due balance and as

soon as the invoice is past due.

• If payment is not received from this first collection letter within 10days of the first letter being printed, send them the next and finalletter.

• If the customers require the second letter, charge them 75 USD (U.S.Dollars) and lock their account. This letter also must be sent

regardless of the customer balance. Also, add text to the letter thatstates this is their final warning and their account is being blocked

and sent to a professional collection agency.

• Set a parameter so that Customer 1201 will receive the collectionletter.

• Here is some additional information to help in this task:

Field Value

Collection letter sequence Coll_2X

Description Collection_Two Attempts

Note (for first letter) This is to remind you of your outstanding

balance for the delivered goods specified. We

assume that you have merely overlooked this

matter, and we look forward to your immediateaction.

Note (for second letter) This is the final notification that will be sent

from us about your past due balance. Please paythis amount immediately. If we do not receive

your payment, your account will be blocked and

we will be forced to send this to a professional

collection agency.

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Field Value

Customer Posting Profile GEN

Use posting profile from Select

Posting profile GEN

Challenge Yourself!

Help Connie create the new collection letter sequence.

Need a Little Help?

• Set the accounts receivable parameters so that collection lettersgenerate at the time of printout.

• Create and define a collection letter sequence.

• Attach the collection letter sequence to the GEN posting profile.

Step by Step

Follow these steps to set the accounts receivable parameters so that collection

letters are generated at the time of printout.

1. Click Accounts receivable, click Setup, and then click Parameters.


3. Click the Update collection letter code arrow, and then clickPrintout.

4. Close the form.

Follow these steps to create and define a collection letter sequence.

1. Click Accounts receivable, click Setup, click Interest andcollection letter, and then click Collection letter.

2. Press CTRL+N to create a new collection letter sequence.

3. In the Collection letter sequence field, type Coll_2X.

4. In the Description field, type Collection_Two Attempts.

5. Click in the lines.

6. Click the Collection letter code arrow, and then click Collection

letter 1.

7. In the Description field, type First letter.

8. In the Ledger account field, type 403150.

9. In the Fee in currency field, type 25.

10. Click the Note tab, and enter this message in the Note field:“This is to remind you of your outstanding balance for the delivered

goods specified. We assume that you have merely overlooked this

matter, and we look forward to your immediate action.”

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11. Click the Overview tab.

12. Press CTRL+N to enter an additional collection letter sequence.

13. Click the Collection letter code arrow, and then click Collection.

14. In the Description field, type Last Chance.

15. In the Ledger account field, type 403150.

16. In the Fee in currency field, type 75.

17. In the Days field, type 10.

18. Select the Block check box.

19. Click the Note tab, and enter this message in the Note field:“This is the final notification that will be sent from us about your

past due balance. Please pay this amount immediately. If we do not

receive your payment, your account will be blocked and we will be

forced to send this to a professional collection agency.”

20. Close the form.

Follow these steps to attach the collection letter sequence to a posting profile.

1. Click Accounts receivable, click Setup, and then click Postingprofiles.

2. Click the Gen posting profile, and then click the Setup tab.

3. Press CTRL+N.

4. Click the Account code arrow, and then click Table.

5. In the Account group/number field, type 1201.

6. In the Summary account field, type 130100.

7. In the Settle account field, type 110110.

8. Click the Collection letter sequence arrow, and then click Coll_2X.

9. Close the form.

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Process Collection Letters

Processing collection letters is a two-step task:

• Create the collection letters.

• Print, cancel, or post the collection letter notes.

Procedure: Create Collection Letters

Follow these steps to create collection letters.

1. Click Accounts Receivable, click Periodic, click Interest andcollection letter, and then click Creation of collection letter.

2. Select the check boxes next to the items to include in the collectionletter from the following:

o Invoice

o Credit note

o Payment

o Interest

3. In the Collection letter field, select the collection letter for the process to run. Collection letters must be processed in the sequence

defined in the collection letter sequence. Collection letter 2 cannot be

processed unless collection letter 1 is processed previously.

4. Enter the Collection letter date.

5. In the Use posting profile from field, select from the following:

o Account - uses the posting profile from the customer account

o Select - uses the designated posting profile selected in thePosting profile field

6. To only run the job for specific customers, click the Select button toopen the query.

7. Click OK to run the process. As soon as collection letter jobs are processed, the collection letters can be:

o Printed

o Posted

o Canceled

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Collection Letter Note

You can print, post, or cancel the collection letter jobs in the Collection letter

note form. If a specific collection letter does not have to post, cancel the letter by

highlighting the line and pressing the Cancel button. You can cancel a group of

letters by pressing the Cancel button and entering selection criteria. Additionally,you can add fees, change wording, and so on, before posting. As soon as the

letter posts, no changes are allowed.

It is not unusual to wait to post the collection letter fees until the customer

actually has paid the fee. In most cases, the customer does not pay the fee at all.

Therefore, the collection letter remains in this form and eventually is canceled

after the invoice is paid. The collection letter (with a fee attached) should be

posted only in the event the customer actually pays the fee.

FIGURE 7.6 COLLECTION LETTER NOTE FORM

Procedure: Print and Post Collection Letters

Follow these steps to print and post the collection letters.

1. Open Accounts Receivable, click Periodic, click Interest andCollection Letter, and then click Collection Letter Note.

2. Select the View checkbox to select which collection letter notes

should display in the Status list. The following status codes areavailable:

o Created - Whether the collection letter job is executed

o Posted - Whether the collection letter note is posted

o Canceled - Whether the collection letter note is canceled byusing the Cancel button

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3. On the General tab, select other options for detailed informationabout the collection letter.

4. On the Transactions tab display the transactions the collection letteris created for.

5. Enter any other necessary address information, notes, or dimensions

on the appropriate tabs.6. Highlight the collection letter(s) to print.

7. Click the Print button, and then click Collection letter note.

8. To post, click the Post button.

NOTE : You must make any changes or deletions of base data or collection letter

records before printing and posting.

Test Your Knowledge

1. After an interest note or collection letter is created, what are the next

available options? (Select all that apply)

( ) Delete

( ) Print

( ) Post

( ) Cancel

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Lab 7.2 - Collection Letter

Scenario

Connie, the Credit and Collections Manager at Contoso, must process and post

the first collection letter from the new collection letter sequence that she hascreated, completing the following tasks.

• Run a collection letter job for the first collection letter.

• Use 10/15/2008 as the date.

• Print the letter.

• Post the collection letter.

Challenge Yourself!

Help Connie process the first collection letter.

Need a Little Help?

• Create the first collection letter.

• Review, print, and post the collection letter.

Step by Step

Follow these steps to create a collection letter.

1. Click Accounts receivable, click Periodic, click Interest and

collection letter, and then click Creation of collection letter.

2. Select the Invoice check box.

3. Click the Collection letter arrow, and then click Collection letter 1.

4. In the Collection letter date field, enter 10/15/2008.

5. Click the Use posting profile from arrow, and then click Select.

6. Click the Posting profile arrow, and then click Gen.

7. Click OK to process the job.

8. Click the Close button to close the Infolog.

Follow these steps to review, print, and post the collection letter.

1. Click Accounts receivable, click Periodic, click Interest andcollection letter, and then click Collection letter note.

2. Click the collection letter previously created for customer 1201, clickthe Print button, and then click Collection letter note.

3. Click OK . Review the collection letter.

4. Close the collection letter.

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5. Click the Printed check box.

6. Click the collection letter previously created for customer 1201, andthen click the Post button.

7. Enter 10/15/2008 in the Posting date field.

8. Click OK .

9. Click Close to close the Infolog.

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Set Up Interest Codes

If collection letters are sent out and the customer still does not pay, a company

may want to charge interest on late payments. For each interest calculation, the

company can charge a fee that adds to the interest for each customer.

Procedure: Create Interest Codes

Follow these steps to set up the interest codes.

1. Click Accounts receivable, click Setup, click Interest andcollection letter, and then click Interest.

2. Press CTRL+N to create a new record.

3. Enter an Interest code and a Description of the interest code.

FIGURE 7.7 INTEREST FORM

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Procedure: Create Interest Codes - Interest Earnings

Follow these steps to define interest earnings information for interest codes.

1. From the Interest form, click the Setup tab.

2. In the Debit % field, enter the interest percentage to charge eachmonth for invoices and interest. Then, select which kinds of

transactions to include in the calculation when it runs.

3. In the Debit calculation per field, specify the unit of time MicrosoftDynamics AX 2009 should calculate interest on overdue balances

for. The Debit calculation per field works together with the

Day/Mth. field based on the period selected. The interest calculation

supports interest added daily (1 day), or interest added the first of

each month (1 month).

o If the daily basis is selected, each additional day is calculated at1/30 interest.

o If the month basis is selected, one day past the new month periodadds 30/30 interests.

4. In the Day/Mth. list, select Days or Month to determine the periodthe interest is calculated for. This field works to determine the period

of time Microsoft Dynamics AX 2009 should calculate interest on

the outstanding balance due on an invoice.

5. In the Ledger posting debit field, enter the ledger account for posting interest payments.

Procedure: Create Interest Codes - Interest Payments

Follow these steps to define interest payment information for interest codes.

1. On the Setup tab of the Interest form, in the Credit % field, enterthe interest percentage to be paid each month for credit notes,

payments, and interest payments. Then, select which kinds of

transactions to include in the calculation when it runs.

2. In the Credit calculation per field, specify the unit of timeMicrosoft Dynamics AX 2009 should calculate interest on overdue

balances.

o This field works together with the Day/Mth. field based on the period selected. The interest calculation supports interest added

daily (1 day), or interest added the first of each month (1 month).o If the daily basis is selected, each additional day calculates at

1/30 interest.

o If the month basis is selected, one day past the new month periodadds 30/30 interest.

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3. In the Day/Mth. list, select Days or Month to determine the periodthe interest calculates for. This field works to determine the period of

time Microsoft Dynamics AX 2009 should calculate interest on the

overpaid balance from the invoice.

4. In the Ledger posting credit list, enter the ledger account for posting interest earnings.

Procedure: Create Interest Codes - Days of Grace

Follow these steps to enter the grace period for interest calculations.

1. On the Setup tab of the Interest form, in the Days field, enter thenumber of days allocated for a grace period from the due date to the

date when the charges are to be initiated.

For example, a company could allow five days from the actual due

date to the date received before it starts to charge late fees and

interests. In this case, enter 5 in the Days field. When the currently

defined interest code is selected in Payment Terms, the customer has

five days before Microsoft Dynamics AX 2009 starts adding interest

and late fees to the outstanding balance.

Procedure: Create Interest Codes - Terms of Interest

Follow these steps to enter the terms of interest information.

1. From the Interest form, enter the following information in theTerms of interest tab in the lower part of the form.

2. In the Currency field, select the currency that activates the fee. Use

this as a criterion when the relevant fees are selected. Onlytransactions with this currency can activate the fee.

3. In the Description field, enter a description of the interest in thecurrent language.

4. In the Fee account field, enter the account where the fee should post.

5. In the Fee in currency field, enter the fee in currency for interestnotes with this currency code.

6. In the Item sales tax group, view the tax group used for calculatingtax on interest notes.

7. In the Minimum amount field, verify that the interest less than theamount in this field is not added. Zero in this field means no limit.

For example, if the interest is calculated to 9 dollars and 10 dollars isin the field, there is no added interest.

NOTE : The value in the field is the absolute value.

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NOTE : All fields on the General tab in the lower section are the same as the

Overview tab.

Procedure: Attach Interest Codes to Posting Profiles

Customers are linked to interest codes indirectly through the posting profiles. Donot specify interest codes directly on the customer; assign codes to a posting

profile. Follow these steps to attach interest codes to posting profiles.


2. Select the posting profile to edit, and then click the Tablerestrictions tab.

3. Specify whether interest is calculated on outstanding balances forcustomers who have this profile by selecting the Interest check box.

4. On the Setup tab, specify which interest code is used. You can

specify this for:o One

o A group

o All customers

You can set up different customers or groups of customers differently on the

same posting profile.

Procedure: Set Up Accounts Receivable Parameters

Complete the following last step to set up the Accounts Receivable parameter

specific to interest.



3. Click the Interest calculation arrow and select how interest shouldcalculate from the following:

o Open and closed transactions - Invoices open for payment andinvoices closed but paid later than their due date.

o Open transactions - Only invoices open for payment.

o Closed transactions - Only invoices closed but paid later thantheir due date.

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Test Your Knowledge

1. How are interest codes attached to customers?

2. What is the only parameter in Accounts Receivable that is directly related to

interest?

( ) Cash-discount administration

( ) Shipping specification

( ) Expiry days

( ) Interest calculation

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Lab 7.3 - Set Up an Interest Code

Scenario

A few weeks ago, a two-level Collection letter plan was instituted at Contoso.

The results have not been as positive as had been hoped, so now Phyllis, theAccounting Manager, wants to institute a plan which charges overdue customers

rather high interest premiums on past due accounts. The first interest plan will be

7.5% on accounts past due 45 days, and the first customer to receive this interest

letter is Customer account 4015.

Below are the other details to use:

Field Value

Interest code 45

Description 7.5% after 45 days

Round-off 0.10

Use posting profile

from

Select

Posting profile Gen.

Ledger posting

debt

700200

Ledger posting

credit

700200

Challenge Yourself!

Help Phyllis print the letter and post the transaction.

Need a Little Help?

• Create an interest code.

• Attach the new interest code to the posting profile.

• Check the accounts receivable parameters.

Step by Step

Follow these steps to create an interest code.

1. Click Accounts receivable, click Setup, click Interest andcollection letter, and then click Interest.

2. Click CTRL+N to create a new record.

3. In the Interest code field, type 45.

4. In the Description field, type 7.5% after 45 days.

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5. Click the Setup tab.

6. In the Debt % field, type 7.5.

7. In the Debt calculation per field, type 45.

8. Click the Day/Mth arrow, and then click Day.

9. In the Ledger posting debt field, type 700200.

10. In the Ledger posting credit field, type 700200.

11. Click in the lines, and in the Description field, type 45 days late!

12. Click the Fee account arrow, and then click 403100.

13. Close the form.

Follow these steps to attach the new interest code to the posting profile.


2. Click the GEN line, and then click the Table restrictions tab.

3. Verify that the Interest check box is selected.

4. Click the Setup tab.

5. Click the line for Account/Group number 1201.

6. Click the Interest code arrow, and then click 45.

7. Close the form.

Follow these steps to check the accounts receivable parameters.



3. Click the Interest calculation arrow, and then click Open and

closed.4. Select the Multiple interest rates check box.

5. Close the form.

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Calculate Interest

You can generate interest note proposals that appear in the Interest note form, so

you can post and print the interest notes that are sent to customers.

Procedure: Calculate Interest

Follow these steps to calculate interest.

1. Click Accounts Receivable, click Periodic, click Interest andcollection letter, and then click Interest calculation.

2. Select the Invoice, Credit note, Payment, and Interest check boxesto calculate on these options.

3. In the From date field, indicate the date to start the calculation. Thecalculation includes only transactions due in the period between the

from and to date. Leave the field empty for calculation of all past

transactions. Indicate the date to end the calculation in the To date field.

4. Indicate the Round-off amount on individual interest transactions.

5. Select whether to use the posting profile from the customer accountin the Use posting profile from field or select one in the Posting

profile field.

6. Click the Select button to open the Microsoft Dynamics AX 2009query form to only run the job for specific customers.

7. Click OK to run the process.

FIGURE 7.8 INTEREST CALCULATION FORM

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Printing and Posting Interest Notes

As soon as interest notes process, you can perform the following tasks to the

interest notes:

• Print

• Post

• Cancel

Perform this by using the Interest note form. It is not unusual to wait to post the

interest notes fees until the customer actually pays the fee.

The Status field displays the status of the current interest note. The following

status codes are available:

Status Description

Created When the interest note job is executed.

Posted When the interest note is posted.

Canceled When the interest note is canceled by using the Cancel button.

In most cases, the customer does not pay the fee at all, and the interest note

remains in this form until is the user cancels it. It only posts if the customer

actually pays the fee.

NOTE : To print a list of interest notes for customers click Accounts receivable ,

click Reports , click External , and then click Interest Note.

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Lab 7.4 - Calculate Interest

Scenario

Several weeks ago at Contoso, management instituted a two-level collection

letter plan. The results have not been as positive as management hoped.

Therefore, now Connie, the Collections Manager, wants to institute a plan that

charges overdue customers an interest premium on past-due accounts. The first

interest plan will be 7.5 percent on accounts 45 days past due. After printing the

letter, Connie will post the transaction, and then view the customer's account to

make sure that the interest transaction appears.

Here are the other details to use:

Field Value

Interest code 45

Description 7.5% after 45 days

Round-off 0.10

Use posting profile from Select

Posting profile GEN

Ledger posting debt 700200

Ledger posting credit 700200

Challenge Yourself!

Help Connie institute the new interest plan.

Need a Little Help?

• Calculate interest.

• Post the interest note.

• Review the interest journal.

Step by Step

Follow these steps to calculate interest.

1. Click Accounts receivable, click Periodic, click Interest andcollection letter, and then click Interest calculation.

2. Select the Invoice and Interest check boxes.

3. In the From date field, type 01/01/2008.

4. In the To date field, type 10/31/2008.

5. In the Round-off field, type 0.10.

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6. Click the Use posting profile from arrow, and then click Select.

7. Click the Posting profile arrow, and then click Gen.

8. Click the Select button, and on the Customer account line, type 1201in the Criteria field.

9. Click OK to close the form.

10. Click OK to process the job.11. Click Close to close the Infolog.

Follow these steps to post the interest note.

1. Click Accounts receivable, click Periodic, click Interest andcollection letter, and then click Interest note.

2. Click the interest note previously created.

3. Click the Print button.

4. Click OK . View the interest note.

5. Close the print form.

6. Click the Post button.

7. In the Posting date field, type 10/31/2008.

8. Select the Interest per transaction check box.

9. Click OK .

10. Click Close to close the Infolog.

11. Close the form.

Follow these steps to review the interest journal.

1. Click Accounts receivable, and then click Customer Details.

2. Click Customer account 1201.3. Click the Inquiry button, and then click Interest journal to view the

transaction.

4. Close all the forms.

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Summary

You can define several versions for both collections letter procedures and interest

calculation, including:

• Applying the same setup for all customers

• Having different options for different groups of customers

• Allocating a specific setup to each customer

• Combining all three levels

Because Microsoft Dynamics AX 2009 is a multilanguage application, all

external documents can be stored in the language that is defined for a particular

customer, such as the following:

• Account statements

• Interest notes• Collection letters

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Test Your Knowledge

Test your knowledge with the following questions.

1. What is the difference between a collection letter and an interest note?

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Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this

chapter

1.

2.

3.

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Solutions

Customer Account Statement

1. What is a centralized statement?

MODEL ANSWER:

A centralized statement is a combined customer statement sent from one

company that includes transactional data from one or more selected

companies.

Set Up Collection Letters

1. Name five things that can be set up in the Collection letter form.

MODEL ANSWER:

• Fee • Number of collection letters to be sent • Sequence of collection letters

to be sent • Terms of payment • Collection letter code (which letter to send

when) • Ledger accounts • Days (that a receivable is past due before the letter

goes out; and days since the previous letter was sent out) • Minimum amount

• Blocking • Notes • Currency • Item sales tax group

Process Collection Letters

1. After an interest note or collection letter is created, what are the nextavailable options? (Select all that apply)

( ) Delete(√) Print

(√) Post

(√) Cancel

Set Up Interest Codes

1. How are interest codes attached to customers?

MODEL ANSWER:

By table, group, or all relation on the (customer) posting profile.

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2. What is the only parameter in Accounts Receivable that is directly related tointerest?

( ) Cash-discount administration

( ) Shipping specification

( ) Expiry days

(•) Interest calculation

Test Your Knowledge

1. What is the difference between a collection letter and an interest note?

MODEL ANSWER:

Collection letters are sent to customers to remind them of outstanding

receivables and urge them to pay soon. Interest notes are assessments of

interest on the outstanding receivables.

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Documents

Ax2009 Enus FINII07