Frequently Asked Question

A customer will automatically be put on hold when they pass their credit limit. They can also be put on hold when their outstanding balance reaches a certain threshold (30/60/90). In order to automatically put a customer on hold when their outstanding balance passes one of the date based boundaries, the system uses a couple of system-wide settings, and then customer specific settings to accomplish this.

System Settings

9. SYSTEM UTILITIES…> 3. SYSTEM SETUP…> 1. ACCOUNTS RECEIVABLE…> 1.SYSTEM PARAMETERS

44. Default Overdue - For HOLD or COD purposes, at what age is an invoice considered overdue. [1] is 30 days, [2] is 60, etc. If [2] is the default, then the HOLD/COD status applies after the account goes into 60 days.

45. Credit Hold Date - This is the date, either [s] for statement date or [t] for today’s date, to use when calculating whether or not an account is considered overdue. If option [s] is chosen (recommended), when the statements are printed, the hold or COD rating on the customer account will be removed automatically when payment is made. A report prints during the accounts receivable à Cash receipts processing à Cash receipts Update when the account has been paid to notify you that the hold / cod rating has been updated / removed.

If option [t] is chosen, then the HOLD/COD rating will float over the course of the month, since it would be possible to have the account be OK today, but overdue tomorrow.

46. Check Holds - If the [s] option is chosen for the credit hold date field, then reply [y] to this field to have the HOLD/COD status checked and updated with Cash Receipts.

47. Overdue Type - When the account is overdue, the account will be placed on HOLD or set to COD. This is a fundamental question that will affect all customers except those that have been set to ignore the overdue by setting the accounts receivable à File maintenance à customer maintenance customer record field for overdue control FLAG to [0] or [9]. When the customer is placed on HOLD, no sales activity is permitted except for Returns [r] and Payments on Account [$]. If the customer is set to COD however, the customer may still purchase product, but is not permitted to charge anything to their account.

System Settings

1. ACCOUNTS RECEIVABLE…> 1. DATA MAINTENANCE…> 1. CUSTOMERS…

Within the customer maintenance screen, there is an additional flag that is set by customer to determine the overdue threshold

45. Overdue Control Flag

In the parameter file, you should have already indicated the default setting on whether an overdue status on the account will result in the accounts being placed on HOLD or COD. This field determines the number days overdue this specific account must be in order to activate either the HOLD or COD. [1]=30 days, [2]=60 days, [3]=90 days. If you wish to ignore the overdue day processing and manually place customers on HOLD or COD, use [0] or [9] in this field.

If you are going to use this feature, please be sure to advise AMS so that your End of Day processing can be configured to correctly update the customer record with the appropriate information.

If the default is to place the customer on COD, then cash sales to this customer will be permitted, but not charges to the account. However, if the default is to place the customer on HOLD, then only Return and Received on Account type transactions will be permitted.

Payments received in the office and applied to the customer account in 1. Accounts Receivable…> 4. transaction processing…>5. cash receipts processing will automatically update the COD/HOLD status on the customer record. This is the field called rating, which can be manually adjusted as long as this field is set to [0] or [9] for ignore.