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Customize customer posting profiles for interest/collection fees (?)

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Posted on by Jo.L 115

hi all, 

We received the business-requirement whereby we, monthly, need to be able to identify the outstanding (unpaid) receivables with regards to interest-fees & collection fees. The motivation is that from a due diligence point of view, we want to reverse the P&L impact for the unpaid fees. It makes sense to correct the P&L statement as with these fees there is a high risk of not being paid and/or reversed, waived etc... 

The request of the business-department is to have posting profile whereby the postings made for these type of transactions are ventilated to a separate receivables balance-sheet account which is off course still part of the accounts receivables ledger/subledger. My concern is that adjusting posting profiles might be a tricky thing to do  in Ax2012. 

Has anyone encountered a similar request? Any feedback on other options how to best fulfill the business requirement? 

kind regards, 

Jo

  • Verified answer
    Jo.L Profile Picture
    Jo.L 115 on at
    RE: Customize customer posting profiles for interest/collection fees (?)

    hi all, 

    Together with a colleague we have found an additional approach: you can define a second customer posting profile which you want to specifically use for posting interest-fees. 

    Upon creation of the interest-notes, select the posting-profile (default option). By default the customer posting profile from the customer (account) is used, but you can select another one.

    This will allow you to create interest notes which are part of the subledger and are posted to a separate BS AR account. 

    I have processed a payment to test the settlement and this appears to be working fine. I am now testing the waive, reinstate & reverse function to see if that works fine as well with the other posting profile.

    kr, 

    Jo

  • Michal Krejza Profile Picture
    Michal Krejza on at
    RE: Customize customer posting profiles for interest/collection fees (?)

    Hello Jo,

    I am not aware of any better alternative.

  • Suggested answer
    Jo.L Profile Picture
    Jo.L 115 on at
    RE: Customize customer posting profiles for interest/collection fees (?)

    hi all, 

    I have ran some tests and Ax creates the postings for interest & collection charges with a separate transaction type. ("Interest" and "reminder")

    Next i have used the report "open transactions" in the AR module, and inserted both values for the field "transaction type" and this provided me the necessary information. 

    Anybody has a better/alternative way of retrieving this information? Perhaps something (restrictions...?) we need to take into account with this method?

    kind regards, 

    Jo

  • Jo.L Profile Picture
    Jo.L 115 on at
    RE: Customize customer posting profiles for interest/collection fees (?)

    hi, 

    Does anybody know how the generated postings for fees & charges are identified on a customer subledger? Today we have invoices/creditnotes and payments on the customer subledger. We will add the receivables positions for charges & fees. Does anybody if (perhaps on table level) they are identified differently than an invoice/creditnote? 

    If so, this would open the possibility to simply create a report (e.g. PBI as we already have a full AR dashboard in place) to identify the unpaid AR positions with regards to fees and charges. I would prefer this option above the customization of the customer posting profiles.

    kind regards, 

    Jo

  • Jo.L Profile Picture
    Jo.L 115 on at
    RE: Customize customer posting profiles for interest/collection fees (?)

    hi Ludwig, 

    As always, your input is much appreciated. 

    Thank you for the link to the info on how to handle fees... this i am aware off.

    Your more or less confirmed my assumption: not a lot of people are actually posting the fees & charges. 

    But this is not my main topic... this is a decision taken by the business department. 

    As they decided to post the fees & charges, they need to ventilate the AR position (balance sheet) to a separate account as part of the ledger and subledger. 

    The only way i see is a customization of the customer posting profile to get this done. --> customization. 

    I will discuss this with a developper.

    kind regards, 

    Jo

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Customize customer posting profiles for interest/collection fees (?)

    Hello Jo,

    There are not many people actually posting the fees and charges.

    Anyway, if this is your procedure and you want to waive them, then have a look at the following article, which describes the AX2012 out of the box functionalities that can help you with your process.

    docs.microsoft.com/.../waive-reinstate-or-reverse-interest-or-fees

    If what is described in this article does not fully cover what you need then I would recommend talking to a developer to make some further modifications to fit your needs.

    Best regards,

    Ludwig

  • Jo.L Profile Picture
    Jo.L 115 on at
    RE: Customize customer posting profiles for interest/collection fees (?)

    hi Ludwig,

    Thank you for your feedback.

    I understand your point of view but it is preferred to financially post the fees:

    • From an accounting point of view, the best situation is to have the receivables with regards to fees, part of your customer ledger/subledger. If it is not recorded in the proper way, one could doubt the intention and the collectability. Remember that one of the main purposes of accounting is to express the actual situation of the company. So if according to our T&E we charges fees, it has to be expressed in our accounting books. The current option Ax offers does not make a lot of sense... they should better provide an option to record the fee revenue upon receipt of payment and otherwise leave it on the balance-sheet. 
    • Secondly, the fees are part of our terms & conditions. We are entitled to invoice them but have not done this consistently in the past. This has changed and therefore we prefer to post the fees. This will not prevent that these fees can be waived,  reversed etc... e.g. commercial negotiations with customers etc... As our customers are not (yet) used to our company invoicing the fees and this sometimes could bring our sales-colleagues in new situations... we expect that in the beginning they will be waived exceptionally but after the "transition" period, customers will have to comply with the agreed T&E.

    If we are not posting the fees.... is there an option to still show them as part of the ledger/subledger for the customer? Because if they are not part of the statements, collection-letters etc... it will be hard to get them paid.

    Any feedback is more than welcome, 

    kind regards, 

    Jo

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Customize customer posting profiles for interest/collection fees (?)

    Hello Jo,

    Why don't you simply stop posting interest and collection fees if the majority of your customers don't pay?

    You can still print this information e.g. on collection letters but simply not post them.

    Otherwise, you create a lot of unnecessary extra work for your finance team.

    Especially if you want to reverse out those posting on a monthly basis, posting them does not seem to make sense to me.

    Best regards,

    Ludwig

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