Option 2: Maintaining contract note-based charges

  1. Access Customer Contract Charges (FR15.1).
  2. Select the company, customer, ship to number, and contract number for the contract that you want to maintain the charges.
  3. Select the Inquire form action.
  4. Select Note on the line where the charge is displayed to open Note Based Charge (FR15.4). Use this form to create and maintain a customer charge on a contract with a principal and interest computation.
  5. To change the note information, use these guidelines to specify the field values:
    Status

    Select Active, if no sales entries exist for the contract.

    Taxable

    Select whether the charge is taxable.

    Begin Date

    Specify the charge start date to be defaulted on sales entries.

    Interest Rate

    Specify the annual interest rate associated with a note-based charge.

    End Date

    Specify the date when the charge will no longer default on sales entries.

    Number of Payments

    Specify the original number of payments contracted for the note-based charge.

    Note Amount

    Specify the original amount of the note-based charge.

    Payment Amount

    Specify the charge amount in the contract currency.

    Print Balance on Statement

    Select Yes to print the note balance on Statement Print (AR150).

    Current Balance

    Specify the full balance of the note-based charge.

  6. Select the Change form action.
    Note: You can access the prepayment subform only when the Status field is set to Active.
  7. To define a note-based prepayment or payment deferment, select Prepayment to open Note Based Prepayment (FR15.5).
    Note: After you specify and release prepayments, run Prepayment Update (FR195) to create general ledger transaction records to debit cash and credit the note asset account. A prepayment reduces the outstanding principal amount of the note.