Introduction - Set up reminder terms
Reminder terms specify when and how reminders are created. After the reminder terms have been created, the Reminder Term Code is assigned to the relevant customers.
A reminder term contains different reminder levels and determines how many reminders are sent to a customer. Each level will determine when and how the reminder is created. Typically, the first reminder for an invoice will have a different look than the second and third reminder.
For example, you can set up a Reminder Term Code with three reminder levels and it can have no more than six reminders. Additionally, here is some additional information about reminders.
In Business Central, a given overdue invoice can appear on no more than six reminders. The first reminder will be created according to the conditions that are set up on level 1, the second on level 2, and the rest on level 3. The third, fourth, fifth, and sixth reminder will look identical.
When one of the overdue invoices appears on five reminders, all reminders to the customer are blocked until that invoice is paid. Even if the customer has other overdue invoices that haven't yet reached the maximum, additional reminders can't be created.
Typically, blocked reminders occur when a company hands over the customer dossier to a lawyer or another external collections company that will handle the collection of all overdue invoices. With this approach, the company can no longer continue sending reminders to that customer from Business Central.
Create reminder terms
If customers have overdue payments, you must decide when and how to send them a reminder. In addition, you might want to debit their accounts for interest or fees. You can set up any number of reminder terms. For each reminder terms code, you can define an unlimited number of reminder levels.
Set up reminder terms by using the following steps:
Select the Search for Page icon in the top-right corner of the page, enter reminder terms, and then choose the related link.
Create a new line by entering the following fields:
Code and Description - Provides a unique identifier and a short description for the reminder term.
Max. No. of Reminders - Identifies the maximum number of reminders that can be created for an invoice.
Post Interest - If this option is selected, any interest that is listed on the reminder will be posted to the G/L and customer accounts when the reminder is issued. The interest becomes an open customer ledger entry. Then, the reminder can be created and the interest can be calculated when the entry becomes overdue. The G/L account that is used when you are posting is determined by the Interest Account field on the Customer Posting Group that is assigned to the customer.
Post Additional Fee - If this option is selected, any additional fee that is listed on the reminder will be posted to the G/L and customer accounts when the reminder is issued. The additional fee becomes an open customer ledger entry. Then, the reminder can be created when the entry becomes overdue. The G/L account that is used when you are posting is determined by the Additional Fee Account field on the Customer Posting Group that is assigned to the customer.
Minimum Amount - Identifies the minimum amount that must be owed before a reminder is created.
Post Add. Fee Per Line - If this check box is selected, any additional fee that is listed on the reminder lines will be posted to the G/L and customer accounts when the reminder is issued. The additional fee becomes an open customer ledger entry. Then, the reminder can be created when the entry becomes overdue. The G/L account that is used when you are posting is determined by the Add. Fee Per Line Account field on the Customer Posting Group that is assigned to the customer.
Create reminder levels
The first time that you create a reminder for a customer, the setting from level 1 is used. When the reminder is issued, the level number is registered on the reminder entries that are created and linked to the individual customer ledger entries. If it is necessary to remind the customer again, all reminder entries that are linked to open customer ledger entries are checked to locate the highest level number. The conditions from the next level number will then be used for the new reminder.
If you create more reminders than you have defined levels for, the conditions for the highest level will be used. You can create as many reminders as are allowed by the Max. No of Reminders field in the reminder terms.
Set up reminder levels by following these steps:
On the Reminder Terms page, select the line with the terms that you want to set up levels for and then select the Levels action.
Create a new line by entering the following fields:
No. - Identifies the level of the selected reminder term. The next consecutive number is automatically generated when a new level is added.
Grace Period - Specifies the time that must pass from the due date of the original overdue invoice or from the due date of the previously issued reminder before a reminder is created.
The first reminder will be created if the document date on the reminder header is after the due date of the open customer ledger entry. This reminder represents the outstanding overdue invoice, plus the grace period for the first level.
Any succeeding reminders are created if the document date is after the due date of the last issued reminder plus the grace period.
Due Date Calculation - Indicates the date formula that is used to determine how the due date is calculated on the reminder. The due date is calculated from the document date.
Calculate Interest - If this option is selected, interest is calculated on the reminder lines and is displayed on the reminder.
Interest is calculated based on the Finance Charge Terms Code that is assigned to the customer.
Whether the interest will be posted when you issue the reminder depends on the settings in the Post Interest option on the reminder level.
Additional Fee (LCY) - Specifies the amount of the additional fee in the LCY that will be added on the reminder.
Add. Fee per Line Amount (LCY) - Specifies the line amount of the additional fee in the LCY.
Add. Fee Calculation Type - Specifies how the additional fee is calculated.
Fixed - The Additional Fee values on the line on the Reminder Level page are used.
Single Dynamic - The per-line values on the Additional Fee Setup page are used.
Accumulated Dynamic - The values on the Additional Fee Setup page are used.
Add. Fee per line Description - Specifies a description of the additional fee.
The following table shows how grace periods and due date calculations are used on an invoice that is due January 29 (01/29).
| Rem. Level | Invoice Due Date / Prior Reminder Due Date | Grace Period in Rem. Terms | First Possible Document Date of Reminder | Due Date Calc. in Rem. Terms | Reminder Due Date |
|---|---|---|---|---|---|
| 1 | 01/29 | 3D | 02/02 | 5D | 02/07 |
| 2 | 02/07 | 5D | 02/13 | 1W | 02/20 |
| 3 | 02/20 | 5D | 02/26 | 2D | 02/28 |
You can create the first reminder on February 2 because the invoice is due on January 29. Adding three days brings the date to February 1. This addition is still part of the grace period that must be completely passed before the reminder can be created.
If you don't create reminders until February 5, this date will be the document date of the reminder and the reminder due date will be February 10, and so on.
Write beginning and ending texts
For each reminder level, you can specify text that will be printed before (Beginning Text) or after (Ending Text) the entries on the reminder.
Follow these steps to enter the texts:
On the Reminder Levels page, select the line with the level that you want to set up texts for, select Related > Level, and then select Beginning Text or Ending Text.
Add as many text lines as you want.
You can also use the placeholders that are shown in the following table to automatically insert related values in the resulting reminder text.
| Placeholder | Value |
|---|---|
| %1 | Content of the Document Date field on the reminder header |
| %2 | Content of the Due Date field on the reminder header |
| %3 | Content of the Interest Rate field on the related finance charge terms |
| %4 | Content of the Remaining Amount field on the reminder header |
| %5 | Content of the Interest Amount field on the reminder header |
| %6 | Content of the Additional Fee field on the reminder header |
| %7 | The total amount of the reminder |
| %8 | Content of the Reminder Level field on the reminder header |
| %9 | Content of the Currency Code field on the reminder header |
| %10 | Content of the Posting Date field on the reminder header |
| %11 | The company name |
| %12 | Content of the Add. Fee per Line field on the reminder header |
For example, if you write, You owe %9 %7 due on %2, then the resulting reminder will contain the following text: You owe USD 1,200.50 due on 02-02-2014.