The Reminders feature in Dynamics NAV is a powerful tool that lets you automatically keep track of overdue debtors payments and charge interest or additional fees on overdue amounts using the Create Reminders batch job. This process can be run for individual control of the Customers who receive Reminders as well as through a bulk reminder process.
The core driver behind Reminders is the Reminder Terms you can set for each Customer. These can mimic Payment Terms (such as 14 Days from Invoice or End of Next Month) or be based on Customer Posting Groups (such as Domestic and Foreign).
Reminders allow you to create a systematic process to stay on top of your cash flow.
Underneath Reminder Terms, you have Reminder Levels, which is where the timing of the Reminder and any Additional Fees are set up. Each Reminder Term can have a number of Reminder Levels, up to the Maximum specified (if zero, there is no maximum).
The advantage of basing your Reminders on the client Payment Terms is that your users will be familiar with the set up, and the reminders for customers due to pay at the end of the month may be stricter than those on 14 day terms. Conversely, fee structure may differ between domestic and foreign vendors (either through policy or legality) which the Reminder Terms could reflect. On each Reminder Term, you can set the Maximum No. of Levels, or whether to Post Interest, total Additional Fee or an Additional Fee per Line. Each of these can be turned on individually so it is possible to use a combination of these, although using only one of the three is recommended.
For each Reminder Level, you must set the Level (consecutive numbers starting at 1); the Grace Period; Due Date Calculation; and Additional Fee (always in local currency). The Grace Period is a time after the payment due date during which, if payment is received, no applicable interest or additional fees will be charged. Beyond the Grace Period any charges will be calculated from the original due date. Due Date Calculation determines the due date of interest or additional charges. If left blank, the due date will equal the Posting Date of the Reminder.
If you are interested in learning more about Reminders, contact Fenwick Software on 03 9695 3333.