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Microsoft Dynamics NAV Coffee Break: Finance Charge Memos In Dynamics NAV - YouTube
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Todayās coffee break is on finance charge
memos.
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You want to create finance charge memos and
add an additional fee.
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Thatās something that Navision does pretty
easily.
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So the first thing you need to do is actually
create your finance charge terms.
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So we do that under Departments, Financial
Management, and weāre going to go to Receivables
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and then way down here at the bottom under
Administration, we have our Finance Charge
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Terms.
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So Iāve got a couple created in here.
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Iāve got one for domestic and foreign.
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I have different grace periods and things
like that depending on where theyāre located.
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So you may want to do the same thing.
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Here weāve got ā let me just make this
a little bigger for you.
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Weāve got the first one which is 1.5 percent
charge for domestic customers and Iāve got
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a description here just to let me know what
itās for and then Iām saying that I want
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to calculate my interest based off of the
open entry.
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So you can do closed entries or you can do
both.
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For the interest calculation method, I go
for an average daily balance.
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But you could also do balance due.
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For the interest rate for my domestic customers,
I charge a 1.5 percent interest rate and the
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interest period is broken down into 30-day
buckets.
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The minimum amount is I put $15.50.
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So what happens is itās going to go through
and calculate the interest.
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If itās less than $15.50, then itās not
going to create a finance charge memo.
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So weāre basically not going to bother.
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So once it hits this number, then weāre
going to go and have them create the finance
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charge memo.
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In addition to creating a finance charge,
weāre going to do an additional fee for
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my time and sending out mail and all that
good stuff.
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So my additional fee is $7.
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Weāve got a grace period of five days and
my due date calculation is one month.
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Now over here, we have the line description.
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It has actually got some symbols in there
that will be replaced with data.
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So in this case, I have āpercent forā
which ends up being the interest rate.
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So we will actually show 1.5 percent finance
charge of and then in here, weāre going
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to have the amount.
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So itās going to replace those symbols with
data.
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If you want to see different options for that,
we have here ā Iām going to hold this
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up for a minute so you can get a screenshot.
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But the line description field will look at
these little predefined options and replace
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them with the data accordingly.
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All right?
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So you can see how I chose my interest rate
and the amount.
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All right.
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So now that Iāve got that, I say I do want
to go ahead and post the interest, which means
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Iām going to have to establish a GL account
for that interest to be posted to and I will
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show you where to do that and I want to post
my additional fee, which is that $7 fee.
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All right.
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So once that has been created, I need to assign
it to my customer.
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Letās go back up here to the customers.
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Letās go back up here to the customers.
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There we go and on my customer card, on the
payment tab, there we go, I have on the payment
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tab over here Finance Charge Terms Code.
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So this is a domestic customer.
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So I went ahead and assigned the 1.5 domestic
code to that account.
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Now while Iām in here, I told you itās
going to go to a GL account.
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Well, your customer posting group is where
you establish that account.
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So letās go ahead and take a look at that.
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Over here we have the interest account and
the additional fee account.
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So mine, Iām going to the same GL account.
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You may want to break it up into different
accounts and thatās fine.
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But thatās how it knows which GL account
to hit and youāre going to need to know
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that because at the end of the year, most
people donāt like to pay the finance charges
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and youāre going to have to write it off.
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So youāre going to be looking at that account
in here.
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All right.
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So once thatās done, we can go ahead and
create our finance charges.
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So we do that by going to Financial Management
and Periodic Activities and then weāre going
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to go ahead and go to Receivables and Finance
Charge Memos.
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So what weāre going to do is first create
them and weāre going to take a look at them
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and see if we want to use them.
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So you put in your posting date and your document
date and this will be course the date that
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the finance charge hits their account and
I click OK.
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It generates them and letās just take a
look at one here.
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All right.
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So you can look at this and you can decide
that you donāt want to issue it and you
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could just delete it and go to the next one
or maybe you want to edit it.
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So this is just a suggestion and you will
see here that all the header information came
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in with the customerās information.
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All their different invoices are listed and
that description that weāve put in, that
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āpercent forā was replaced with a 1.5
percent finance charge and of course that
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percent five was replaced with the amount.
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So here we have the amount thatās remaining
on the invoice and then hereās the finance
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charge that was created at 1.5 percent.
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We have an additional line down here to that
GL account that we looked at and itās for
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$7 and then we get a grand sum total here
of everything thatās due.
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So once youāve looked this over, and youāve
approved it, you issue it.
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So up here in my home ribbon, I click on Issue
and you can email it.
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You can print it.
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Iām going to print it so that you can take
a look at it and if these sat for a few days
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and you need to replace the posting date,
you can certainly do that.
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Once itās ā now there comes out of my
printer.
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Once it has been issued, it moves off this
list and you would go to the next one.
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So once youāre done, these live over in
Issued Finance Charge Memos.
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Just click down here and this is the one that
we just created and letās just preview it
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for you.
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So this is what it looks like.
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It has got the customer address.
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This is our return address and then it has
got all those invoices on there, the additional
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fee, and the total.
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In addition to being located in the Issued
Finance Charge Memo area, you can see it from
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the customer part.
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Letās go back to receivables and we will
just take a look at this customer and if you
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need to reprint it for them because they claim
they didnāt get it, you can go to Navigate,
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Issued Documents and Issued Finance Charges
and thatās where it lives.
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You can also drill into their balance and
you will see down here the finance charge
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that was created.
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So the document type for finance charge, although
it is an invoice, it does flag it as a finance
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charge so that you can see the difference
and thatās the total of the finance charges
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plus the ā that additional fee.
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That concludes our lesson on creating finance
charge memos.
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Thanks for watching this ArcherPoint video.
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If you found it helpful, make sure to check
out our website and blog at www.ArcherPoint.com.
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Additionally, if you have any questions regarding
our products, services or information in this
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video, feel free to email us at [email protected].
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Thanks.
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