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Baan Finance

Accounts Receivable

Module Procedure UP036A US

Accounts Receivable

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Document

Document code : UP036A USDocument group : User DocumentationDocument title : Accounts ReceivableApplication/Package : Baan FinanceEdition : ADate : July 1998

© Copyright 1998 Baan Development B.V. All rights reservedThe information in this document is subject to change without notice. No part of this documentmay be reproduced, stored or transmitted in any form or by any means, electronic or mechanical,for any purpose, without the express written permission of Baan Development B.V.Baan Development B.V. assumes no liability for any damages incurred, directly or indirectly, fromany errors, omissions or discrepancies between the software and the information contained in thisdocument.

Accounts Receivablei

Table of contents

1. The Accounts Receivable (ACR) module in BaanERP 1-11.1 The ACR concept as applied in BaanERP 1-11.2 ACR’s functional procedures 1-21.3 The modules related to ACR 1-31.4 The functionality of ACR’s business objects 1-4

2. The manual sales invoicing procedure 2-12.1 Entering a manual sales invoice 2-12.2 Entering credit notes and invoice corrections 2-32.3 The sessions that are related to the main procedure 2-42.3.1 Doubtful Sales Invoices (tfacr2140m000) 2-42.3.2 Remove Fully Paid Sales Invoices (tfacr2260m000) 2-42.3.3 Write off Payment Differences (tfacr2240m000) 2-42.3.4 Write off Currency Differences (tfacr2250m000) 2-5

3. The credit-control procedure 3-13.1 To set up a credit-control system 3-13.2 To send reminder letters for overdue invoices 3-53.3 Sessions related to the main procedure 3-73.3.1 Reminder Diary by Credit Analyst (tfacr3135m000) 3-73.3.2 Reminder Diary (tfacr3130m000) 3-73.3.3 Action Dates (tfacr3131m000) 3-73.4 To send statements of account 3-8

4. The interest-invoicing procedure 4-14.1 To create interest invoices 4-1

Accounts Receivableii

Accounts Receivable1

About this document

Read this document to get an overview of the Accounts Receivable module’sfunctionality and to learn more about the functional procedures that are relatedto ACR.

You need no detailed knowledge of the BaanERP software to read thisdocument. However, you are more likely to understand the contents if you arefamiliar with:

n The overall structure of packages, modules, and sessions within theBaanERP software

n The general business procedures used in everyday business practicen The basic concepts of enterprise resource planning

For detailed descriptions of the module’s sessions, refer to BaanERP’scomprehensive online Help.

To use this document

Read Chapter 1, The Accounts Receivable (ACR) module in BaanERP, if youwant to know more about:

n The module’s functionalityn The relationship of the module with other modulesn The functionality of the module’s business objects

Read Chapter 2, The manual sales-invoicing procedure, if you want to knowmore about:

n The sessions in the proceduren The results of the proceduren The sessions that are related to the procedure

Read Chapter 3, The credit-control procedure, if you want to know more about:

n The sessions in the proceduren The results of the proceduren The sessions that are related to the proceduren A secondary procedure related to the main procedure

Read Chapter 4, The interest-invoicing procedure, if you want to know moreabout:

n The sessions in the proceduren The results of the procedure

Accounts Receivable2

Acronyms used in this document

ACP Accounts payable

ACR Accounts receivable

BM Baan Maintenance

CI Central invoicing

COM General data

EMM Enterprise modeling management

FAS Fixed assets system

GLD General ledger

IBD Item base data

MCS Tables

PIN Project invoicing

PUR Purchase control

SLI Sales invoicing

SLS Sales control

TD Baan Order Management

TF Baan Finance

TI Baan Manufacturing

TP Baan Project

TS Baan Service

WH Baan Warehousing

XCH Baan Exchange

Legend

Mandatorysession

Indicates a mandatory session

Optionalsession

Indicates an optional session

Mandatorybusiness object

Indicates a mandatory business object

Optionalbusiness object

Indicates an optional business object

TFIndicates a package

SLIIndicates a module

ACRIndicates a module that is described in the module procedure

Accounts Receivable1-1

This chapter provides information on:

n The ACR concept as applied in BaanERPn ACR’s functional proceduresn The modules related to ACRn The functionality of ACR business objects

1.1 The ACR concept as applied in BaanERP

Baan’s Accounts Receivable system helps you keep track of all the invoices thatbusiness partners must pay to you. If invoices are not paid on time, you can usethe ACR module to generate reminder letters and calculate a penalty interest onthe invoice amount.

This module is closely related to the Sales Invoicing (SLI) module in CentralInvoicing (CI). All sales invoices that are generated in one of the logisticpackages, such as Order Management, Service, or Maintenance, are collected inSLI. Although invoices can be processed in SLI, open entries are always presentin ACR.

In the ACR module, you can manually create invoices. To summarize, you can:

n Monitor all sales invoices that are not yet paidn Manually enter sales invoicesn Maintain the link between ACR and GLD using financial business partner

groupsn Create reminders for overdue invoicesn Calculate interest on overdue invoices for the overdue period. Interest

invoices are then created in SLIn Generate statements of accounts for particular business partners

1. The Accounts Receivable (ACR) module in BaanERP

The Accounts Receivable (ACR) module in BaanERP


Figure 1 shows how the ACR module is positioned in BaanERP.

Logistics

EMM

Finance

ACRFAS

SLI

Central Invoicing

MCS

IBD

GLD

Basic data

COM

TI

TDWH

Service

Project

TP

TS

CMG ACP

GLD

Figure 1, The ACR module within BaanERP

ACR is an execution module. In the ACR module you can monitor all invoicesthat are generated within BaanERP and for which you must still receivepayment. If necessary, you can send reminders, or calculate interest on theinvoice amount.

1.2 ACR’s functional procedures

The ACR module contains three main functional procedures.

n Processing sales invoices: Manually entering a sales invoicen Dealing with overdue invoices:

− Setting up a credit control system− Sending reminder letters− Sending statements of account (a secondary procedure)

n Creating interest invoices



1.3 The modules related to ACR

Figure 2 shows the modules that are related to ACR.

ACR

GLD

ACP FAS

SLI

SLS

TS

TP

WH

CMG

Figure 2, The modules related to ACR

There are four Baan Finance modules that have a link with the ACR module:

n In the General Ledger (GLD) module, ledger accounts and transaction typesare defined for posting all accounts-payable transactions. ACR is asubledger of the GLD module. Consequently, all ACR-related postings aremade in the GLD module.

n In the Cash Management (CMG) module, the payments for the open salesinvoices are received. BaanERP keeps track of all received payments for allopen sales invoice entries in ACR.

n If the business partner is the same for both invoices you can balance salesinvoices from ACR with purchase invoices from the Accounts Payable(ACP) module. The balancing is carried out in the Cash Management(CMG) module.

n A link with the Fixed Assets (FAS) module exists to handle the removal ofa fixed asset from the FAS module (disposal). The entry of a fixed-assetdisposal is started in the ACR module by registering a disposal transaction.



Several links exist between the ACR and other packages:

n In the Sales Invoicing (SLI) module in Baan Central Invoicing (CI), you cancreate, print, and post sales invoices for several BaanERP (logistic)packages. Open entries are created in ACR for all invoices that exist in SLI.

n Several integration links exist between ACR and logistic modules andpackages. Open entries in ACR are generated by the Sales Control (SLS)module in Baan Order Management and by the Baan packages Project (TP),Warehousing (WH), and Service (TS).

1.4 The functionality of ACR’s business objects

ACR contains the following business objects:

n Master Datan Transaction Processingn Open Entriesn Credit Controln Business Partner Statementsn Interest Invoices



Figure 3 shows the main flow between the business objects.

Master Data

Transaction Processing

Open Entries

Credit ControlInterest Invoices

Business Partner Statements

FAS

SLI

CMG

GLD

Figure 3, The main flow between the business objects in the ACR module

Master Data

Certain master data must be available for the ACR module to work properly:

n The ACR parameters that concern:− Invoice control: Transaction types, currency differences, tax

calculation, and so on.− Credit control: When to send a specific reminder letter for overdue

invoices.

n Financial business partner groups and a schedule of ledger accounts anddimensions for each group.

n Problem codes and problem references. A problem code can be linked to aninvoice for which you expect a payment problem. A problem code indicatesthe nature of the problem.



n Aging-analysis codes that you can use to classify the invoices based on theirinvoice date or due date. These codes allow you to gain insight into the ageof the outstanding amounts.

Most importantly, the link with the general ledger must be defined. In ACR,you must define your financial business partner groups. In the General Data(COM) module, you must link all invoice-to business parters and sold-tobusiness partners to one of the groups.

For each financial business partner group, you can then indicate the controlaccount and to which ledger accounts and dimensions the ACR transactions(such as discounts, interest invoices, currency differences, and advance receipts)are posted.

Transaction Processing

You can use this business object, to manually create sales invoices that are notrelated to a sales order. However, you cannot print these invoices. If you wantto create invoices that you can print, you must use the SLI functionality.

In ACR Transaction Processing, you can:

n Create sales invoicesn Create sales-credit notes for one or several invoicesn Make correction on sales invoices

Chapter 2, The manual sales invoicing procedure, explains how to create salesinvoices.

Open Entries

In the Open Entries business object, all invoices for which you expect to receivepayments are recorded, which includes the invoices for sold goods, services,and so on. The open entries (unpaid invoices) are created through the SLImodule. All unpaid sales invoices that are generated within in BaanERP have anopen entry here as well as in SLI.

Open entries for logistic transactions can be generated in ACR in several ways:

n When the Post Integration Transactions to Finance Transactions(tfgld4201m000) session is run, open entries are created for all logistic salestransactions.

n When you enter a manual sales invoice in SLI, an open entry is created forthis invoice.

n When you enter a manual sales invoice in ACR’s Transaction Processingbusiness object, an open entry is created. The procedure of entering a salesinvoice manually in ACR is described in Chapter 2.

Link with GLD



In Open Entries, you can:

n View all these open entries in different ways (for example, by businesspartner or by invoice document number)

n Change invoice datan Write off payment differences and currency differencesn Print aging analyses, to gain insight in the amount of time invoices remain

unpaid

Credit Control

An important feature of ACR is its ability to monitor overdue invoices andcreate reminder letters (dunning letters) to send to business partners. Based oninvoice date, due date, ACR parameters, and reminder methods that you createin this business object, the reminder letters are created to urge your businesspartners to pay.

You can create a number of increasingly urgent reminders that BaanERPautomatically selects to send in the appropriate order. A link with CashManagement (CMG) is present to check if payments for an invoice havearrived.

To summarize, you can use Credit Control to:

n Define reminder methods to control, among other things, the frequency withwhich reminders are sent.

n Select overdue invoices and print the reminders.

n Maintain a credit diary, which contains the open invoices for which theaction date has passed. These invoices are eligible for sending reminders.

Business Partner Statements

This business object helps you to maintain and print statements of account forbusiness partners. Statements of account, unlike reminders, do not emphasizethe need for payment but simply list the open entries that exist for a businesspartner.

To create a statement of account, you can use a layout that is defined in thisbusiness object and an aging analysis code. Also, you can define header andfooter text as well as the invoice data that must be printed, which is performedin the Statement of Account Letters (tfacr3513m000) session.

You can define statement methods to indicate:

n The frequency by which statements must be createdn The layout code for a particular statement methodn Whether the statements must be sent directly to the business partner or to a

parent company



You can link a statement method to an invoice-to business partner in theInvoice-to Business Partners (tccom4112s000) session.

Interest Invoices

When invoices are not paid on time, another action (besides sending remindersor statements of account) is to charge interest on the invoice amount. Thecharging of interest is carried out after the last late payment on an invoice isreceived in the CMG module.

In the Interest Invoices business object, you can calculate interest on overdueinvoices and generate interest invoices as a result. Open entries are created forthese interest invoices, but once they are created, the rest of the interest invoiceprocedure is handled in SLI.

In ACR’s Interest Invoices business object, you can:

n Control how interest is calculated on invoices and when interest invoicesare created

n Set the percentage of interest that must be calculated, which depends on thenumber of days an invoice is overdue

n Create a selection of invoices for which interest invoices must be createdn Transfer (create) the interest invoices to the SLI module


This chapter describes:

n The main manual sales invoicing proceduren How to enter credit notes and invoice correctionsn The sessions that are related to the main procedure

2.1 Entering a manual sales invoice

In BaanERP, the main procedure for entering a sales invoice, printing it, andsending it to a business partner is carried out in the Sales Invoicing (SLI)module. However, you can also manually enter a sales invoice in the ACRmodule in the Transaction Processing business object.

The manual sales invoice procedure in ACR allows you to manually create asales invoice, credit note, or sales invoice correction. However, you cannot printthe invoice in ACR.

After you have entered a sales invoice, an open entry is created in the OpenEntries business object of ACR. The sales invoice transaction lines are posted tothe general ledger.

Figure 4 shows the steps in the manual sales invoice procedure.

Transactions (tfgld1101m000)

Sales Invoices (tfacr1110s000)

Sales Invoice Transactions(tfacr1111s000)

TransactionError Log

(tfgld1106m000)

1

2

3

4

Figure 4, The manual sales invoice procedure

2. The manual sales invoicing procedure

The procedure’s result s

The manual sales invoicing procedure


The manual sales invoice procedure consists of the following steps:

Step 1 Transactions (tfgld1101m000)

In this session, you must indicate the type of transaction that you want to create.Also, you must select the appropriate batch in which the transaction must becreated. Transactions of the same batch are always finalized and posted togetherto a certain financial period in the GLD.

To perform this function you must create a new record and select a transactiontype of the Sales Invoices transaction category. Save the record and click EnterTransactions. The Sales Invoices session is started.

Step 2 Sales Invoices (tfacr1110s000)

Now, you can create the sales invoice header. BaanERP first assignes adocument number to the invoice. From now on, this number together with thetransaction type, is used to identify the invoice. Whether or not you canmanually change this number depends on the settings for the transaction type inthe GLD master data.

In the sales invoice header, a lot of data is defined, such as:

n The invoice-to business partnern The document (creation) date and due daten The total invoice amountn Currency datan The level of tax calculation and other tax datan Terms of payment

After you have entered the header data, click Lines. The Sales InvoiceTransactions session is started.

Step 3 Sales Invoice Transactions (tfacr1111s000)

For a single sales invoice header, you can enter one or more transactions. Eachtransaction receives a line number that identifies it within the invoice’sdocument number.

Finally, a sales invoice transaction is posted to the general ledger. You cancreate one transaction for the total invoice amount, or several transactions inwhich the invoice amount is split up. You can define a ledger account anddimensions for each transaction.

After entering the ledger account, transaction amount, and other data, save thetransaction and exit the Sales Invoice Transactions session and then exit theSales Invoices session. In the Transactions session, the status of the transactionis set to Ready.

Step 4 Transaction Error Log (tfgld1106m000)

If an error occurres during the processing of the sales invoice header or atransaction line, a description of the error is entered into a log file.



For example, if the remaining amount, which is displayed in the Sales InvoiceTransactions session, is not zero, the following error is logged:

Document balance is not zero

BaanERP displayes the error log after you close the Transactions session. Youcan use the error description to solve the error and try to process the salesinvoice again.

2.2 Entering credit notes and invoice corrections

To correct the amount receivable for a sales invoice, you can use a credit note oran invoice correction. The procedures for entering credit notes and invoicecorrections are very similar to entering a regular sales invoice.

Credit notes are entered in the Sales Invoices (tfacr1110s000) session. For thecreation of a credit note, you can use a transaction type of transaction categorySales Credit Notes or Sales Invoices.

If you select a Sales Credit Note transaction type, the amount in the invoiceheader must be positive. The amount entered in the transaction line can be apositive debit amount or a negative credit amount, depending on the definitionof the transaction type in the GLD module.

If you select a Sales Invoices transaction type, the amount in the invoice headermust be negative. You can only create a credit note in this way if negativeamounts are allowed for the transaction type you selected. The amount enteredin the transaction line is a negative credit amount.

You can link a credit note to one or more invoices. To link a credit note to oneinvoice, simply enter the invoice’s document number in the Original Invoicefield of the Sales Invoices (tfacr1105000)session.

To link a credit note to several invoices, you must create a transaction using atransaction type of the Sales Corrections category, which is defined forassigning credit notes to invoices. The Credit Notes by Business Partner sessionis started, in which you can select a credit note. Then, start the Assign CreditNotes to Invoices (tfacr2121m000) session, in which you can assign the creditnote to invoices and distribute the credit note amount over them.

The Sales Corrections category can also be used for entering simple invoicecorrections. This feature is essential if, after posting the batch used to create asales invoice, modifications in the invoice header must be made that haveconsequences for the financial accounting.

A transaction type with the Sales Corrections category can be defined to use theSales Invoice Corrections (tfacr2110s000) session. When you enter atransaction using this transaction type, the Sales Invoice Corrections session isstarted. Here, you can correct an invoice’s business partner, amount, or taxdetails.

The correction is posted to GLD as an extra line of the sales invoice header.

Credit notes

Invoice corrections



2.3 The sessions that are related to the main procedure

2.3.1 Doubtful Sales Invoices (tfacr2140m000)

If sales invoices are doubtful (that is, they probably cannot be cashed), you canpost them to a special ledger account for doubtful invoices. This ledger accountis defined in the Ledger Accounts by Financial Business Partner Group(tfacr0111m000) session.

Marking a sales invoice as doubtful is carried out in the Transaction Processingbusiness procedure. You must enter a transaction using a transaction type of theSales Corrections transaction category. The Doubtful Sales Invoices sessionmust be linked to this transaction type in the GLD Master Data.

The Doubtful Sales Invoices session displays the sales invoices by businesspartner. You can mark an invoice as doubtful by selecting the Doubtful checkbox. When you close the session, the new doubtful invoice amount is posted tothe ledger account for doubtful invoices.

If you change a doubtful invoice back to normal by clearing the Doubtful checkbox, the invoice amount is posted back to the business partner’s control account.

You can only use the Doubtful Sales Invoices (tfacr 2140m000) session withinvoices that are finalized.

2.3.2 Remove Fully Paid Sales Invoices (tfacr2260m000)

Invoices for which all amounts, including corrections and so on, are fully paid,can be deleted from the ACR module. This session removes all invoices fromthe open entry file that have a zero balance, including all correspondingdocuments, such as payments, corrections, and so on. Address data of one-timecustomers and receipt schedules are removed as well.

You can only remove invoices if:

n The invoice is finalizedn All the invoice’s receipt documents (received payments) are finalizedn The related cash forecast is updated in the Cash Management (CMG)

module

You should run this session regularly, because excessive invoice data will havea negative effect on performance. When deleting the invoices, BaanERP cancopy them to a history company to be archived.

2.3.3 Write off Payment Differences (tfacr2240m000)

Open invoices that are almost completely paid, but for which a small remainingamount still exists, can be closed in this session. This function is useful if theremaining amount is too small to wait for its payment.

Note

Note



In this session, you can indicate the maximum amount and percentage that canbe written off as payment difference. BaanERP selects those invoices that havean open amount lower than both the maximum amount and the maximumpercentage you specified.

The selected open amounts are posted as payment differences to the ledgeraccount that is defined for payment differences in the Ledger Accounts byFinancial Business Partner Group (tfacr0111m000) session.

2.3.4 Write off Currency Differences (tfacr2250m000)

During the period between the creation and the payment of invoices, exchangerate fluctuations can occur. This fluctuations leads to the appearance ofunrealized currency differences. Currency losses are always posted, whilecurrency profits are only posted if this is indicated in the ACR Parameters(code)session.

This session can be used to write off both currency profits and currency losses.The resulting currency differences are posted to the ledger account forunrealized currency differences defined in the Ledger Accounts by FinancialBusiness Partner (tfacr0111m000) session.

The realized currency differences, which result from an invoice amountbeing expressed in a currency other than that of the payment, are processed afteran invoice is fully paid in the Bank Transactions (tfcmg2100s000) session.




The main credit-control procedure is split up in two procedures:

n Setting up a credit-control systemn Sending reminder letters for overdue invoices

In addition, this chapter describes:

n Additional information about the main proceduren Sessions related to the main proceduren Sending statements of account (a secondary procedure)

3.1 To set up a credit-control system

In BaanERP, you have extensive possibilities for handling sales invoices thatare not paid on time. In the ACR module, you can create and process remindersfor overdue sales invoices. The reminders are generated on the basis of theinvoice’s due date. When an invoice has passed its due date plus a certainmargin of days, BaanERP generates a reminder advice for the invoice. With acredit control system, you can control and monitor the creation of reminderadvices and the printing of reminders.

How and when reminders or statements of account are sent to a business partneris highly user-controllable. Different credit control parameters are set:

n For a business partner, in the Invoice-to Business Partners (code)session inthe General Data (COM) module.

n For reminder letters in general, on the Credit Control tab of the ACRParameters (code) session.

The layout and content of the reminder letters is defined in the Credit Controlbusiness object. Also, reminder methods are defined here that among otherthings, indicate the period of time between the sending of two reminders.

All these credit control parameters and reminder data must be defined beforereminder letters can be created and sent.

3. The credit-control procedure

The credit-control procedure


Figure 5 shows the steps in the credit control setup procedure.

Invoice-to Business Partners(tccom4112s000)

ACR Parameters(tfacr0100s000)

Reminder Data(tfacr3508m000)

Reminder Costs(tfacr3102m000)

1

2

3

4

Reminder Line Layout(tfacr3101m000)

5

Reminder Methods(tfacr3520m000)

6

Figure 5, The credit control setup procedure

The credit control setup procedure consists of the following steps:

Step 1 Invoice-to Business Partners (tccom4112s000)

The credit control parameters are set for a business partner in the Invoice-toBusiness Partners (tccom4112s000) session. These parameters are thefollowing:

n The interval between the sending of statements of account and invoicesn A statement method, defined in the ACR modulen The credit analyst (your employee who controls this business partners’

credit)n The credit limitn The credit insurance companyn The tolerance amount for due invoices. BaanERP will check if the total

overdue invoice amount is higher than the tolerance amount



Step 2 ACR Parameters (tfacr0100s000)

In the ACR Parameters (tfacr0100s000) session, on the Credit Control tab,several parameters are set that control:

n The margin of days after which a reminder letter must be sent. When aninvoice has passed its due date plus this margin of days, BaanERP generatesa reminder advice for the invoice.

n Which reminder letters must be sent. The different reminder letters areindicated by a letter number, which indicates the degree of the reminder.

Step 3 Reminder Data (tfacr3508m000)

Defining the layout and contents of the reminder letters starts in the ReminderData session (tfacr3508m000). The different reminder letters are indicated by aletter number. In the credit control system, the letter number tells you:

n The degree of the reminder. The reminder with letter number 1 is the mostmild, the reminder with the highest letter number is the most urgent.

n How many reminders have been sent to a business partner and whichreminder will be sent next.

Enter a new record to create a reminder letter.

In the Reminder Data (tfacr3100s000) session, you must define the reminderletters that you want to use. First enter the letter number, keeping in mind, thatthe letter number indicates the degree of the reminder.

You can now define some basic data for the reminder letter:

n The languagen Several layout settingsn The interest percentage that is used to calculate interest on the overdue

amount. The interest amount is printed on the reminder letter

Finally, you can define a standard header text and footer text to be printed at thetop and bottom of the reminder letter. Click Text to add header text or footertext.

Step 4 Reminder Costs (tfacr3102m000)

You can start the Reminder Costs (tfacr3102m000) session from the ReminderData (tfacr3508m000) session.

For each reminder letter number, you can define reminder costs, in differentcurrencies that must be charged for overdue invoices. The reminder costs arecharged when an invoice is selected for reminding.



Step 5 Reminder Line Layout (tfacr3101m000)

For each reminder letter, you must define a reminder line layout. The reminderlayout defines the invoice information that must be listed on the reminder letter.These so-called variables can be, for example:

n The invoice daten The invoice amountn The due daten The interest amount

For each of the variables you select, you must indicate the column head and theexact position of the column on the printed letter.

To check your layout, you can:

n Preview it using the Reminder Detail Layout (tfacr3500s000) sessionn Print it using the Print Reminder Detail Layout (tfacr3400s000) session

You can start these sessions from the Specific menu in the Reminder LineLayout (tfacr3101m000) session.

Step 6 Reminder Methods (tfacr3520m000)

The last step in the credit control setup procedure is the definition of remindermethods. A reminder method determines:

n The reminder frequency: the period of time between the sending of tworeminders

n To whose address the reminder and possibly a duplicate reminder must besent:− The invoice-to business partner’s− His parent business partner’s− The pay-by business partner’s

n If interest must be charged for overdue invoicesn Which invoices must be selected for a reminder letter that is sent to a

business partner:− All invoices− Only the overdue invoices

Reminder methods are linked to pay-by business partners in the Pay-byBusiness Partners (tccom4114s000) session.



3.2 To send reminder letters for overdue invoices

After you set up a credit control system, you can send reminders to yourbusiness partners that concern sales invoices that are paid late.

The Credit Control business object contains the functionality for creating andsending reminder letters is centered in The reminder letter procedure entails:

n Selecting invoices for remindingn Maintaining the list of invoices that are due for reminding in the reminder

advicen Printing the reminders

If you only want to inform a business partner about his sales invoices that aredue for payment, you can send him a statement of account instead of a reminderletter. The procedure for sending statements of account is described insection 3.4.

When you have completed the reminder procedure, a list of invoices that areselected for reminding (a reminder advice) is created. The reminders that will besent to the business partners are printed.

The procedure’s results



Figure 6 shows the steps in the reminder-letters procedure.

Select Invoicesfor Reminding

(tfacr3210m000)

Print Reminder Selection(tfacr3410m000)

Print Reminder Letters(tfacr3420m000)

1

2

3

4

Reminder Adviceby Credit Analyst(tfacr3160m000)

Reminder Advice(tfacr3510m000)

5

Figure 6, The reminder letters procedure

The reminder letters procedure consists of the following steps:

Step 1 Select Invoices for Reminding (tfacr3210m000)

When you run the Select Invoices for Reminding (tfacr3210m000) session,BaanERP generates reminder advices for overdue invoices, based on their duedate. The reminder frequency defined in the Reminder methods(tfacr3250m000) session is also taken into account.

Reminder advices are generated by business partner. Reminder letters will becreated for all business partners for whom advices are generated.

Step 2 Print Reminder Selection (tfacr3410m000)

After the reminder advice is generated, you can print the reminder selection tocheck which invoices were selected for reminding. If necessary, you can firstmaintain the reminder advice manually.

Step 3 Reminder Advice by Credit Analyst (tfacr3116m000)

In this session the business partners for whom reminder advices were generatedare displayed. Select a business partner and start the Reminder Advice sessionfrom the Specific menu.



Step 4 Reminder Advice (tfacr3510m000)

You can view and maintain the list of a business partner’s invoices that wereselected for reminding in the Reminder Advice (tfacr3510m000) session. Youcan:

n Add invoices for remindingn Delete invoices if you want to cancel the reminder

In the Reminder Advice (tfacr3110s000) details session, you can:

n Change the invoice status (Due or Normal)n Change the suggested reminder letter number

Step 5 Print Reminder Letters (tfacr3420m000)

Finally, you can print the reminder letters that were selected during thisprocedure.

3.3 Sessions related to the main procedure

3.3.1 Reminder Diary by Credit Analyst (tfacr3135m000)

In this session you can view the invoices with open amounts for whichthe action date (the due date plus the reminder margin) has passed. On theiraction date, BaanERP checks if invoices are paid. If these invoices are not fullypaid, they are listed in the reminder diary. Reminders have been generated forthese invoices.

3.3.2 Reminder Diary (tfacr3130m000)

In this session a reminder diary is available in which you can view thereminders that were generated for invoices that have now passed their actiondate. On the action date, BaanERP checks if the invoices are paid or not.

3.3.3 Action Dates (tfacr3131m000)

After consulting the business partner, you can assign a new action date to aninvoice if this is necessary Select an invoice and choose Action Dates on theSpecific menu. In the Action Dates session you can:

n Assign a new action date to the invoicen Link a problem code to the invoice, which describes the reason why the

invoice is not yet paid

On the new action date, BaanERP will check once more if the invoice has beenpaid.



3.4 To send statements of account

If you want to inform a business partner about his unpaid invoice amounts,without urging him to pay, you can send a statement of account. The procedureto generate and print statements of account corresponds to the reminder letterprocedure.

In the statements of account business procedure, you can:

n Define the layout of your statements of account. This includes selecting anaging analysis code

n Define statement methods, which indicate among other things the frequencyof sending them

n Define the content (header and footer text) and format for differentstatement letters

n Print statements of account

Figure 7 shows the steps in the statements of account procedure.

Statement of AccountLayout

(tfacr3512m000)

Statement of AccountMethods

(tfacr3511m000)

1

2

3

4

Statement of AccountLetters

(tfacr3513m000)

Statement of AccountVariables

(tfacr3114m000)

5 Print Statements

of Account(tfacr3440m000)

Figure 7, The statements of account procedure



The statements of account procedure consists of the following steps:

Step 1 Statement of Account Layout (tfacr3512m000)

First, you must define a layout for your statements of account. You can indicate:

n Several layout settings.

n A text window, which defines the number of characters you can print on aline. You must select or create a text window option if you want to createheader or footer text later on.

n The invoices that must be printed: only the unpaid invoices, or the invoicesthat were paid since the previous statement of account as well.

n The aging analysis code to be used to display or print the open entries invarious columns, depending on the age of the entry.

Step 2 Statement of Account Methods (tfacr3511m000)

A statement method indicates the frequency with which statements of accountmust be sent, and to whom they must be sent. A layout is linked to eachstatement method.

A statement method is linked to a business partner in the Invoice-to BusinessPartners (tccom4112s000) session.

Step 3 Statement of Account Letters (tfacr3513m000)

For each layout you defined, you can now define the format and content of thestatement letters. You must define the letter’s language in the Statement ofAccount Letters (tfacr3113s000) details session.

Optionally, you can also define header and footer text. This is only possible ifyou have selected a text window in Step 1.

Step 4 Statement of Account Variables (tfacr3114m000)

In the Statement of Account Letters (tfacr3114m000) session, you can select astatement layout and choose Statement Layout on the Specific menu. TheStatement of Account Variables (tfacr3114m000) session is started. In thissession, you can define the information to be printed on the letter and its format.

The information elements are called variables and can be, for example:

n The invoice daten The invoice amountn The due daten The total open amount

For each of the variables you select, you must indicate the column head and theexact position of the column on the printed letter.

To check your layout, you can:

n Preview it using the Statement Line Layout (tfacr3511s000) sessionn Print it using the Print Statement Line Layout (tfacr3411s000) session



You can start these sessions from the Specific menu.

Step 5 Print Statements of Account (tfacr3440m000)

You can print a selection of statements of account in this session. You can printa test version of the statements or the final print.

The layouts that are used to print the statement letters are selected based on thestatement method defined for the business partner. This selection is performedin the Invoice-to Business Partners (tccom4112s000) session.


This chapter describes the main interest invoicing procedure.

4.1 To create interest invoices

As a penalty measure, you can choose to charge interest on sales invoices thatare not paid on time. The interest is calculated after the last late payment on aninvoice is received in the Cash Management (CMG) module. Then, you cancreate an interest invoice and send it to the business partner.

The selection of invoices for which an interest invoice will be sent is generatedin the ACR module. This selection is then transferred to the Central Invoicing(CI) package. The interest invoices can be printed in the Sales Invoicing (SLI)module of this package.

The interest invoicing procedure includes:

n Defining general selection criterian Defining the interest percentages for different ranges of days by financial

business partner groupn Selecting the invoices on which interest will be chargedn Transferring the invoices to the SLI module, in which they can be printed

Interest is calculated on invoices that have overdue payments. Interest invoicesare created and transferred to the SLI module. In SLI, these interest invoices canbe posted and printed.

4. The interest-invoicing procedure

The procedure’s results

The interest-invoicing procedure


Figure 8 shows the steps in the interest-invoicing procedure.

Interest invoice Related Data

(tfacr5101s000)

Interest Percentages(tfacr5102m000)

1

2

3

4

Select Bus. Part. Receiptsfor Interest Invoices

(tfacr5210m000)

Interest InvoiceAdvice

(tfacr5110m000)

5 Transfer InterestInvoices to SLI

(tfacr5220m000)

6 Delete Posted

Interest Invoices(tfacr5230m000)

SLI

CMG

Figure 8, The interest invoicing procedure

The interest-invoicing procedure consists of the following steps:

Step 1 Interest Invoice Related Data (tfacr5101s000)

In this session, you can define several parameters that control the way interestinvoices are generated:

n The number of days the invoice must be past its due date before it isselected for interest invoicing.

n The minimum interest amount that must be exceeded by the interest amountbefore an interest invoice is generated.

n Whether receipts of fully paid invoices, or partly paid invoices are selectedfor interest invoicing.



Step 2 Interest Percentages

You can define the interest percentages that are used to calculate the interestinvoice amount for different ranges of days. The interest percentages aredefined by financial business partner group.

The ranges of days defined in the Minimal Days for Interest Invoicing fieldindicate the number of days a payment must be overdue to start charginginterest. You can define different interest percentages for different numbers ofdays.

Step 3 Select Business Partner Receipts for Interest Invoices(tfacr5210m000)

Now you can select sales invoices that have been paid too late, for interestinvoicing. Which invoices are selected depends partly on the settings in theInterest Invoice Related Data session (Step 1):

To generate the interest invoices, a link with the CMG module exists. Interestinvoices are created for the late payments that are received for sales invoices.

The amount that is taken as the base for the interest calculation can be either thereceived payment amount or the remaining open invoice amount. The lowest ofthe two amounts is always taken as base.

All received payments and credit notes are considered to determine theremaining open amount of the sales invoice. Once the remaining open amount isequal to zero, no further interest is calculated.

Step 4 Interest Invoice Advice (tfacr5110m000)

In Step 3, interest invoice advices were generated. Before transferring thegenerated interest invoices to SLI, you can view and modify the list of interestinvoice advices in this session. If an interest invoice line is incorrect, you candelete it or modify the interest amount.

Step 5 Transfer Interest Invoices to SLI (tfacr5220m000)

The interest invoice selection that was created in step 3 can now be transferredto the Sales Invoicing (SLI) module. Interest invoices are created in SLI. At thesame time, open entries are created in ACR as well.

In SLI, the interest invoice are listed in Interest Invoice Lines (cisli2510m000)session. The further processing of the invoices, such as printing and postingthem, is carried out in SLI. You can use, for example, the Compose/Print/PostInvoices (cisli2200m000) session.

Step 6 Delete Posted Interest Invoices (tfacr5230m000)

The interest invoice advices remain listed after they are transferred to SLI, untilthe invoices are printed and finally posted to the general ledger. You can usethis session to remove all invoices that have the Posted status from the InterestInvoice Advices (tfacr5110m000) session.



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