Category Archives: Statement Procedures

Tip #153 – Calculating Finance/Re-Billing Charges

Tip #153
Calculating Finance/Re-Billing Charges

A while ago, I added a feature to the calculation of finance/re-billing charges that would le you print a report of the charges before it actually calculated them.
This was done at the request of one flowerSoft customer that wanted to see which accounts would be imposed finance/re-billing charges in advance so that he would have some control over the operation.

This sounded like a good idea to me so I added this function with what I thought was a pretty clear explanation of the new process.  However, ever since that time I’ve been getting one or two calls every month saying that some accounts that owed money did not print on the statement run.  Invariably, or 99% of the time the reason is because the user either forgot to run the finance charge option


or, if they did select the option to run finance charges, they also selected to print the finance/re-billing charge report first, perhaps inadvertently, and never selected to run the finance charge option again.

So, since I’m also guilty of not reading instructions completely, let me try to explain it here a little more clearly perhaps.


Read what the prompt in blue letters says. It clearly states that if you select to print the finance charge report, finance charges will NOT be posted to the customer’s account.

It also says that once you’ve verified that the finance charges are correct you MUST run this option again and select NOT to print the report.

Also notice that the default answer to the “Print a Finance Charge Report First? (Y/n)” question is YES, indicated by the Y in CAPS.

This means that if you do not specifically answer NO to the question, flowerSoft will print the finance charge report and WILL NOT post the charges to the customer accounts until you run this option again and select NOT to print the report.

I hope this clarifies things a bit more.  So please remember, if you want to see what the finance/re-billing charges are going to be before they are posted to the customer accounts, you have to run the report first but… if you do, once you are satisfied with the way the report looks, you must run the option again and this time select not to print the report.

Tip #148 – Pre-Statement Account Maintenance

Tip #148
Pre-Statement Account Maintainance

If you run balance-forward statements, you should be running at least 2 of the options found in the Pre-Statement Account Maintenance menu.


Option #1 – Find Out of Balance Accounts is an option you should run but it is not critical to a successful statement run.

However, options #4 and #5 and very important and you should run through them every month before you run your statements.

Option #4 – Verify ON ACCOUNT Sales is very important.  Running this option makes sure that all your ON ACCOUNT sales have a matching statement transaction and will therefore show on the customer’s statement.  If for any reason, an ON ACCOUNT order sis not complete successfully, a matching statement transaction may not have been created and the customer will not be billed.
Having a hard copy of the invoice does not guarantee that the statement transaction was created, since the invoice prints before any attempt is made to post the new order.

Option #5 – Calculate Finance/Re-Billing Charges is very important because just about every flowerSoft customer chooses not to run statements for accounts that do not have any activity during the billing period.  By the way, this is the correct option to select while running statements.  You do not want to have a bunch of statements generated for accounts that have not made a purchase or a payment during the billing period and that can be a lot of your accounts.

You may think that if you do not impose a finance or re-billing charge on your late accounts, you do not have to run this option but nothing could be further from the truth.

Every one must run this option.  Why?  Because it makes sure that if a customer made a purchase in June but did not pay for it in July, they will get another statement in August even though they may have not had any activity during the month of July.

Without running this option, flowerSoft will not “see” any activity on the account for the month of July and will not select it for the statement run unless you selected to run statements for all accounts whether they had activity or not, which you are never going to do.

So, if I was you I would run options 1, 4 and 5 every month before I ran the statements, but you’d be foolish not to run at least options 4 and 5.

If you run open-item statements these options are not so critical but there is no harm in you running them.  As a matter of fact, I would encourage you to run them.


Tip #022 – Finance/Re-Billing Charges

Tip #022
Finance/Rebilling Charges

At least once a month I get a call from some flowerSoft user complaining that not all the accounts that should have gotten a statement got one.

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!

I’m sure you all know the difference between a finance charge and a re-billing charge, but just in case…

A finance charge applies a percentage to the outstanding amount of an invoice if over 30 days past the delivery date.

A re-billing charge applies a pre-set charge to the account if it has balances over 30 days old.

In other words, a re-billing charge is always the same whether the customer owes $10 or $1000. A finance charge would be different for both accounts in that case.

A finance charge usually produces more revenue than a re-billing charge if the outstanding balance is large, but the re-billing charge produces more revenue if the outstanding balances are generally small.

However, maybe most of you did not know that you can have the best of both worlds.

You can have a finance charge associated with a minimum charge. So, for example, if the finance charge for an account is calculated at $1.25 for the month, you can tell flowerSoft to make the minimum finance charge $5.00.

In that scenario, no finance charge would be less than $5.00 but it certainly can be well over $5.00 for accounts that have large outstanding balances.

Like I said, the best of both worlds.