Customer Service Charge Administration overview
Function acronym: ARAOS
Use this page to set up a matrix of service charge rates for specific customers, ship to records, groups, or states.
After you set up rates in this function, you must also specify default rates in SA Administration Options-Customers-Service Charges. Customer Service Charge Administration data is used in the Customer Entry Roll Balances Report.
Use Customer Service Charge Administration to adhere to legal requirements per state statutes, where service charges are assessed on customer accounts by either state or individual customer parameters. For example, most states have a maximum service charge for unpaid balances of 18% per annum. The rates per customer or state may vary. To apply service charges, the Service Charge option must be selected in both Customer Setup and Customer Ship To Setup.
Hierarchy
Two hierarchies are used to determine which service charge rates to apply when you run the Customer Entry Roll Balances Report. One hierarchy is for non ship to customers, and the other is for ship to customers. The customer and ship to hierarchies are not mixed.
If the setting is for non-ship-to customers:
- Typical hierarchy is 1) customer number, 2) customer’s state, and then 3) SA Administration Options default, processing from the most discrete application of the service charge, per customer, to the broadest application, all company.
- Group hierarchy is 1) group, 2) customer number, 3) customer’s state, and then 4) SA Administration Options default. Though the group is not the most discrete application of the service charge, it becomes first in the hierarchy because customers are members of the group.
If the setting is for ship-to customers:
- Typical hierarchy is 1) customer ship to, 2) customer ship to state, and then 3) SA Administration Options default.
- Group hierarchy is 1) group, 2) customer ship to, 3) customer ship to state, and then 4) SA Administration Options default.