Tips #018 through #021


Tip #018
Zero Payments
 

What is a “zero payment”? most of you are asking.

A zero payment is a special kind of payment flowerSoft uses to get rid of transactions with credit balances.

For example, a customer owes you $150 but sends you a check for $160 instead.
What flowerSoft does in such cases is pay off the customer’s balance and then issue an overpayment credit for $10.
This overpayment credit is in the customer’s account as a credit balance transaction, in other words, it has a negative balance.

The same would happen if you give an account partial credit for flowers that did not last very long or any other reason that would generate a negative amount transaction.
This negative balance stays in the customer’s account until they make another purchase or you send them a check for the credit balance and then adjust their account accordingly.

Most of you will opt to keep the $10 until the customer makes another purchase, and that is perfectly fine.

Now, when the customer makes another purchase, let’s say for $50, flowerSoft will show that their account owes $40 because when it adds the open transactions, it finds one for $50 and another for $-10 which adds up to $40.

When you send a statement to the customer, the statement will say that they owe $40 and that should be what the customer sends you a check for.

Let’s say you do get the check for $40. When you apply that payment, you should be first selecting the credit balance transaction for $-10 which has the effect of increasing the payment amount to $50, and then selecting the invoice for $50. If you do this, then there is no problem. The account will not show any credit balances.

However, if you select the invoice for $50 first, flowerSoft will not let you select the credit balance transaction because it “thinks” that you’ve run out of money to apply towards open transactions.
This leaves the customer’s account with a $10 open charge and a $-10 credit balance.

They do equal to $0.00 but it is sort of confusing when you look at the account’s transactions. Hence the reason for “zero” payments.

If you have accounts that have both open charges and open credits, you can get rid of the open credits by entering a “zero” payment.

To find out how and when to enter “zero” payments, read the next tip (Tip #019)

 

Tip #019
Zero Payments (Cont.)
 

So, now I should explain when and when not to use “zero” payments.

Never enter a “zero” payment to eliminate credit balances if the account owes less that the credit balance. In other words, if an account has a credit balance transaction of $-50.00 and a debit balance transaction of $30.00 DO NOT enter a “zero” payment because all that is going to do is eliminate the $-50.00 credit with a $-20.00.

Do enter a “zero” payment if the credit and debit transactions match each other or if the debit transaction is larger than the credit transaction.
In other words, if you have a $-50.00 credit and a $50.00, go ahead and use a “zero” payment to eliminate both.

If you have a $-50.00 credit and a $75.00 debit, go ahead and use the “zero” payment to eliminate the credit and reduce the debit to $25.00.

Next tip, how to enter a “zero” payment.

Tip #020
Zero Payments (Cont.)
 

To enter a “zero” payment, go to the A/R menu and go to add a payment the way you do all the time. Enter the account #, flowerSoft will tell you how much the account owes, enter the date and then, in the “Adj.Ref.” field enter either “ZP” or MZP” and hit the <Enter> key.

The difference between “ZP” and “MZP” is that with “ZP” flowerSoft will simply look for the credit transactions and apply them (in a chronological order) to the outstanding charges. You do not get to pick the outstanding charges.

With “MZP”, flowerSoft will allow you to pick which charges the “zero” payment is going to be applied against.

Obviously, if you only have 1 credit and 1 debit you can use the “ZP” or if you do not care which invoices are paid.

If you want to select which invoices get paid, then select the “MZP” option.
“MZP” stands for Manual Zero Payment

 

Tip #021
Zero Payments (Cont.)
 

To find out what accounts have transactions with negative balances; you can hit F9 while in the account number field. After you do that, you can press F8 to display a list of accounts with credit balance transactions and select from that list.

WARNING!

Even though flowerSoft will display the accounts with credit balance transactions, that does not mean that the account itself has a balance larger than the credit balance transaction. In other words, someone can have $-50.00 credit balance transaction and only have a $25.00 outstanding balance in an invoice.

Remember that you should not apply “zero” payments to accounts that don’t have enough debit balance transactions to offset the credit balances.

The bottom line is this, after applying a “zero” payment, the account should have no balance or a positive outstanding balance.

The reason almost always is that they either forgot to run the :Calculate Finance Changes” option or they thought they did not have to because they do not charge their customers a finance charge.

You MUST run the “Calc. Finance/Re-Billing Charges” option found in the Pre-Statement Account Maintenance menu even if you do not charge finance or re-billing charges.

If you fail to do this, accounts that owe you money from a previous month, that had no transactions for the current month WILL NOT receive a statement!

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