Suspension of overdue accounts allows you to keep your customers within check and means less hassle for follow up and operator intervention.
When an account is auto-suspended, any future orders placed on the account are restricted unless operator intervention is performed. The account will also re-instate to an active state once the overdue amounts are paid in full and a debtor aging is performed.
Auto-suspension of accounts can be found in Debtor Configuration and is called “Auto-Suspend Overdue based” and a selection of various accounting periods.
- Period 1,2,3,4
- Period 2,3,4
- Period 3,4
- Period 4
Note; This is a global configuration which affects all debtors equally with the exception of customer files set to Ignore Credit Checks/None behind the Balances Button.
Note; Periods can be based on due date on invoices and reflect the debtor terms code assigned to the account.
A real-time example where this would be applied would be..
A debtor has an overdue amount in Period 3 for an invoice 31 days old based off a Credit Term of 7 Days.
A Debtor Aging is performed, moving the above mentioned invoice into the 4th Accounting Period. When the Auto-Suspend Overdue based is set to Period 4 it will suspend this account.
This change is reflected in customer maintenance. A customer will be set to “Account Auto-Suspended” If the configuration is set to something other than none and they have a balance in one of the configured periods, in this case Period 4.
When they have nothing left outstanding in the configured periods the system will return them to “Normal Credit Checks” status the next time Debtor Aging is performed.