Create Payment Reminder Rule

This document explains how you set the rules determining which invoices should be included in a payment reminder.


A payment reminder rule is defined, regulating among other things the number of reminders to be issued before the matter is handed over for collection and whether any interest and reminder fees should be calculated.

The rule can be reviewed in 'Payment Reminder Rule. Open' (CRS465).

When the payment reminder rule is connected to each customer in 'Customer. Open' (CRS610/K) and activated, it is automatically applied when selecting invoices to be included in a payment reminder proposal. You can also use the reminder rule as an additional selection criterion when creating the proposal in 'Payment Reminder. Open' (ARS150).

The parameter file (CSYTAB) is updated.

Before you start

Parameters to Set

Program ID/Panel Field The field indicates …
(CRS465/E) Number of payment reminders … the number of reminders a payer should receive before the matter is handed over for collection.
(CRS465/E) Number of accepted postal service days … the number of days after the due date allowed for the postal service. When this period of time has passed, invoices can be included in a payment reminder proposal or an interest proposal.
(CRS465/E) Payment reminder interval

... the number of days that should elapse after the latest reminder date before a new payment reminder can be sent.

Note: This means that invoices included in a payment reminder are blocked from being included in another reminder until the specified number of days is passed. However, the latest reminder date can be changed manually for an invoice in 'Accounts Receivable. Display' (ARS200), if a new payment reminder needs to be created before the reminder interval is complete.

(CRS465/E) Minimum amount per payment reminder

... a minimum amount required for creating a reminder for a specific payer/customer.

If the total of all invoices for the payer/customer is lower than this amount, the invoices are included in the reminder proposal but the payer/customer receives block code 5 in the proposal. The block code has to be manually removed to include the invoices in the final reminder.

Note that this only applies to invoices past due. This means that if you have defined that invoices that are not past due should be printed on the reminder as well, these are not included in the calculation.

(CRS465/E) Grouping method

... how records are grouped and displayed in the reminder.

Valid Alternatives

0 (blank) = Not controlled by the reminder rule

1 = Per customer

2 = Per payer.

If alternative 0 is selected, you manually enter the grouping method to use for all customers matching the selection criteria when creating the reminder proposal in (ARS151/F). This makes it easier to create a proposal, since you do not have to make sure that the reminder rules added as extra selection criteria on that panel have the same grouping method.

Interest Calculation

(CRS465/E) Calculation of interest

... whether interest is to be calculated and included in the payment reminder.

(CRS465/E) Print interest on reminder from level

... when interest should be included in a payment reminder: From level 0 (interest included in all reminders), level 1 (after one reminder is sent), level 2 (after two reminders are sent) etc.

The interest is calculated based on the interest rule connected to the payer in 'Customer. Open' (CRS610/K).

Information Included in the Reminder
(CRS465/E) Print order number on reminder ... whether additional information should be printed on the reminder.
(CRS465/E) Print external text

... whether any external text entered for the invoice in 'Customer Invoice. Change' (ARS201/T) should be printed on the reminder.

If alternative Yes is selected, the first three lines of such an external text for an invoice will be added to the invoice record in the reminder proposal as well as in the final reminder. This is done regardless of what is selected in the 'Print external/internal text' field when creating the proposal.

(CFS465/E) Print invoices not past due

... whether open items that are not past due should be included in the reminder.

Valid Alternatives

0 = No

1 = Yes – the total of all not past due invoices is presented before the past due invoices are listed

2 = Yes – all invoices that are not past due are listed together with their total before the past due invoices.

(CRS465/E) Print total reminder level

... whether a subtotal per reminder level should be printed on the reminder.

If alternative Yes is selected, the invoices are sorted by level of reminder for the respective payer/customer.

Control of Reminder Fees
(CRS465/E) Reminder charge

... the administrative reminder fee that is printed on the reminder and charged to the customer.

(The fields used to control the creation of reminder fees in the payment reminder rule were originally added as a part of a Norwegian modification.)

(CRS465/E) Minimum reminder level for reminder charge

... the minimum reminder level that will trigger a reminder fee to be charged.

Example: If the reminder level is 2, a reminder fee will not be created if the payment reminder includes invoices on a level less than 2. However, if the invoices are on level 2 or higher, a reminder fee is automatically created.

(CRS465/E) Minimum reminder charge amount

... the amount limit for reminder fees.

If the total amount for reminder is below this limit, no fee is charged. A reminder fee is charged for an amount above this limit. If the field is zero, then a fee is always generated when a value is entered into the 'Reminder charge field'.

(CRS465/E) Create transactions

... whether accounting transactions are created for a reminder charge in the general ledger.

If alternative No is selected, it is uncertain whether the customer will accept a reminder charge. No invoice record is created for the charge and consequently no transactions are created. An invoice is printed but no extended invoice reference number (OCR or KID code) is printed on the invoice (or giro slip). Instead, the payment reminder number is used as reference. If the customer accepts the charge, the payment is processed using an accounting option in 'Payments Received. Record' (ARS110).

If alternative Yes is selected, the customer is expected to accept the charge and an invoice record is created. Transactions are created based on accounting rules AR45-100 and AR45-335. Information on which voucher series to use is retrieved from FAM function AR45. The invoice printed is processed as a regular customer invoice.

(CRS465/E) Print due date

... whether a due date for the reminder charge should be printed on the final payment reminder.

Note that this check box must be selected if the 'Create transaction' is selected.

(CRS465/E) Payment terms ... how the due date is to be calculated. (Refer to Before Starting.)

Follow These Steps

  1. Start 'Payment Reminder Rule. Open' (CRS465).

  2. On the B panel, give the rule a three-position alpha-numeric code or identity. Click New.

  3. On the E panel, enter a description and a name.

  4. Enter the following basic values: Number of payment reminders (required), Number of accepted postal service days, payment reminder interval (required), Grouping method and Minimum amount per payment reminder.

  5. Enter the values for interest calculation: Calculation of interest, Interest on reminder level, and Print interest on reminder from level.

  6. Enter values controlling which information should be included in the reminder: Print order number on reminder, Print external text, Print overdue invoices, and Print total reminder level.

  7. Enter the values controlling the reminder fees: Reminder charge, Minimum reminder level for reminder charge, Minimum reminder charge amount, Create transactions, Print due date, and Payment terms (required if a due date is to be printed). Press Enter.

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