Settings for Payment Reminders

View - Settings - Accounting - Customer & Supplier Ledger

Payment reminders allow simple follow-up of your customers who do not pay their invoices on time. You can, for example, decide how many payment reminders the customer will receive before interest is charged and a notice of debt collection is considered.

Note! In order to demand interest payment on overdue invoices, there are formal requirements that must be met in regards to the original invoice and the credit charge invoice. Please refer to the relevant laws and regulations or contact your accountant for more information.

You can define the following settings:

Number of payment reminders before notice of debt collection: From a drop-down list, you can select the number of payment reminders to be generated to the customer before a notice of debt collection is issued.

Only send payment reminder(s) for overdue accounts greater than: Payment reminders will only be suggested for overdue accounts above the selected amount.

Reminders and notices of debt collection must include invoice product lines: If the overdue accounts were created in the Sales and Invoicing module, the product lines can be shown on reminders and notices of debt collection.

The accrued fee and interest is to be automatically entered in the receipt registration window: When entering payment for the original overdue account, the accrued charges will be automatically entered into the Reminder fee and Reminder interest columns.

Do not send payment reminders to customers we owe money to: If you select this setting you will be able to avoid sending payment reminders to customers who may pay on account, for example.

Merge invoices for a customer into one reminder with highest level: Select this setting if you wish to merge invoices into one reminder with the highest level, but do not select it if you wish to create separate payment reminders for each level.

Add credit charges to payment reminders: If you select this setting you will be able to add interest to payment reminders and by clicking on the interest rate button to the right, define the interest rate to be charged for late payments.

Tip! Rates for calculating interest are fixed for defined periods. Please refer to the relevant laws and regulations regarding charging interest for your country. For more information regarding calculating the correct interest rate, refer to this website: http://www.deti.ie/enterprise/smes/latepay.htm.

Each time a new reminder is printed and approved, the overdue account’s status changes. At the bottom of the window you can define your own conditions for each of these statuses. The number of statuses corresponds with the number of payment reminders you have selected at the top of the window. Read more in Settings for Payment Reminder levels.