February 22, 2017
Dynamics NAV Coffee Break Finance Charge Memos
Dynamics NAV makes it easy to create a Finance Charge Memo. In this In this latest installment of our NAV Coffee Break video series, Gwen demonstrates how to create the charge, identify the charge terms, interest rates, interest time periods, as well as minimum charges. She also shows how to assign a customer and send the finance charge memo. You can view this video and many other video tutorials for Dynamics NAV at ArcherPoint's YouTube Channel. For your convenience, the transcription of this video follows: Today’s coffee break is on finance charge memos. You want to create finance charge memos and add an additional fee. That’s something that Navision does pretty easily. So the first thing you need to do is actually create your finance charge terms. So we do that under Departments, Financial Management, and we’re going to go to Receivables and then way down here at the bottom under Administration, we have our Finance Charge Terms. So I’ve got a couple created in here. I’ve got one for domestic and foreign. I have different grace periods and things like that depending on where they’re located. So you may want to do the same thing. Here we’ve got – let me just make this a little bigger for you. We’ve got the first one which is 1.5 percent charge for domestic customers and I’ve got a description here just to let me know what it’s for and then I’m saying that I want to calculate my interest based off of the open entry. So you can do closed entries or you can do both. For the interest calculation method, I go for an average daily balance. But you could also do balance due. For the interest rate for my domestic customers, I charge a 1.5 percent interest rate and the interest period is broken down into 30-day buckets. The minimum amount is I put $15.50. So what happens is it’s going to go through and calculate the interest. If it’s less than $15.50, then it’s not going to create a finance charge memo. So we’re basically not going to bother. So once it hits this number, then we’re going to go and have them create the finance charge memo. In addition to creating a finance charge, we’re going to do an additional fee for my time and sending out mail and all that good stuff. So my additional fee is $7. We’ve got a grace period of five days and my due date calculation is one month. Now over here, we have the line description. It has actually got some symbols in there that will be replaced with data. So in this case, I have “percent for” which ends up being the interest rate. So we will actually show 1.5 percent finance charge of and then in here, we’re going to have the amount. So it’s going to replace those symbols with data. If you want to see different options for that, we have here – I’m going to hold this up for a minute so you can get a screenshot. But the line description field will look at these little predefined options and replace them with the data accordingly. All right? So you can see how I chose my interest rate and the amount. All right. So now that I’ve got that, I say I do want to go ahead and post the interest, which means I’m going to have to establish a GL account for that interest to be posted to and I will show you where to do that and I want to post my additional fee, which is that $7 fee. All right. So once that has been created, I need to assign it to my customer. Let’s go back up here to the customers. Let’s go back up here to the customers. There we go and on my customer card, on the payment tab, there we go, I have on the payment tab over here Finance Charge Terms Code. So this is a domestic customer. So I went ahead and assigned the 1.5 domestic code to that account. Now while I’m in here, I told you it’s going to go to a GL account. Well, your customer posting group is where you establish that account. So let’s go ahead and take a look at that. Over here we have the interest account and the additional fee account. So mine, I’m going to the same GL account. You may want to break it up into different accounts and that’s fine. But that’s how it knows which GL account to hit and you’re going to need to know that because at the end of the year, most people don’t like to pay the finance charges and you’re going to have to write it off. So you’re going to be looking at that account in here. All right. So once that’s done, we can go ahead and create our finance charges. So we do that by going to Financial Management and Periodic Activities and then we’re going to go ahead and go to Receivables and Finance Charge Memos. So what we’re going to do is first create them and we’re going to take a look at them and see if we want to use them. So you put in your posting date and your document date and this will be course the date that the finance charge hits their account and I click OK. It generates them and let’s just take a look at one here. All right. So you can look at this and you can decide that you don’t want to issue it and you could just delete it and go to the next one or maybe you want to edit it. So this is just a suggestion and you will see here that all the header information came in with the customer’s information. All their different invoices are listed and that description that we’ve put in, that “percent for” was replaced with a 1.5 percent finance charge and of course that percent five was replaced with the amount. So here we have the amount that’s remaining on the invoice and then here’s the finance charge that was created at 1.5 percent. We have an additional line down here to that GL account that we looked at and it’s for $7 and then we get a grand sum total here of everything that’s due. So once you’ve looked this over, and you’ve approved it, you issue it. So up here in my home ribbon, I click on Issue and you can email it. You can print it. I’m going to print it so that you can take a look at it and if these sat for a few days and you need to replace the posting date, you can certainly do that. Once it’s – now there comes out of my printer. Once it has been issued, it moves off this list and you would go to the next one. So once you’re done, these live over in Issued Finance Charge Memos. Just click down here and this is the one that we just created and let’s just preview it for you. So this is what it looks like. It has got the customer address. This is our return address and then it has got all those invoices on there, the additional fee, and the total. In addition to being located in the Issued Finance Charge Memo area, you can see it from the customer part. Let’s go back to receivables and we will just take a look at this customer and if you need to reprint it for them because they claim they didn’t get it, you can go to Navigate, Issued Documents and Issued Finance Charges and that’s where it lives. You can also drill into their balance and you will see down here the finance charge that was created. So the document type for finance charge, although it is an invoice, it does flag it as a finance charge so that you can see the difference and that’s the total of the finance charges plus the – that additional fee. That concludes our lesson on creating finance charge memos.
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