How to process a payment on a customer's account
Receiving payment on Account
Step 1: Setting up a customer with a credit limit
As a parts or service manager, you may or may not have the permissions to create a credit limit for a customer. If not, please contact the controller and they can assist you in this step.
When a customer comes in to purchase parts and/or accessories or to have work done on their unit, first begin by creating a new Part Sales or Service Order Invoice. Select the Customer by clicking on the Select Customer icon. Insert the items they wish to purchase or that are required to do the job.
To verify if the customer has been setup with a credit limit, you can click on the Payments tab. At the bottom left of this screen, you will see these fields: Credit Limit, Charge Balance, Available Credit and Credits. The Credit Limit will show the customer’s limit, what they’ve already charged will show in the Charge balance, which will calculate the available credit remaining. The Credits field is for account credits (store credit) received from returned parts, unused gift certificate balances, overpaid invoices etc...
If the Credit Limit is zero, they have not been setup to charge on account. To set them up with a limit, click on the Customer Details icon. From the Customer’s Detail Screen, click on the Account tab. If you have the permission, the Credit Limit field will be white and you can enter the appropriate limit and save.
Note: If you do not accept cheques from customers, this is also where you can make sure the payment type for cheque is unavailable by leaving the “Accept Cheques” blank.
Step 2: Receiving Payment on Account
Now that the customer has been setup with a credit limit, he can now charge his purchased items on account.
If there is a part that is not in stock, the system will automatically put a checkmark in the PO column of that item and will ask you to either put the part in the Pooling system or assign it to a new PO or an existing PO.
Since the customer is charging on account, they will likely not be required to pay a deposit. Make sure to not set the Status of the invoice to Charge on Account until all items have been given to the customer.
Once all the necessary items have been added, parts/accessories given to the customer and/or work has been done, the invoice is ready to be closed. Change the invoice status to Charge on Account.
As long as the balance of the invoice does not exceed the available credit amount, the system will close the invoice and remove the parts from inventory.
Note: Even though the invoice is closed, you can still access the Payments tab and add payment lines. This is so that the Parts/Service staff can receive payment from the customer for this invoice at a later date.
The Amount Due field will still show that the invoice has not been paid, and it will stay this way until the payment has been received by the customer.
Step 3: Notifying the Service Department of back ordered parts
When a customer requests to have work done on their unit, but the parts that are required to do the job are not in stock, the service department will ask the parts department to special order these parts. Since the customer is charging the work on account, they will likely not have to pay a deposit for having these parts special ordered.
Once the parts department orders the parts, they need to notify the service department once the parts have arrived or if the parts are on backorder.
Since the Service department staff may not have access to the Purchase Orders, there are a few areas that can be checked to see
the status of the special ordered part.
From the Service invoice, put your mouse over the flag next to the special ordered part.
Note: If the flag is red, this means the part is not in stock. If the flag is yellow, this means the part has been ordered, and if the flag is green, this means the part is now in stock. A little box will appear showing you the PO#, the PO status and the status of the part.
There is also the Customer Special Order Report which can be accessed from the main Service Order screen in the Reports section
Once the parts arrive and the work is done, the invoice Status can be changed to Charge on Account and the customer can leave with their unit.
Connections to Other Areas/Modules:
- Related reports – A/R Aging Summary or Detail Report, AP GL Subledger Report
- Related reports – PO Distribution Report, Customer Special Order Parts Report
- Floor plan GL account shows postings
- Part Detail Screen- In the Open PO’s tab, the Status of “Back Order” will show here
- Customer Management Screen – you can specify your filter to see all customers with a charge balance (These customer’s will have red shirts)
- Customer Detail Screen – Payment Transactions Tab- you can view all the invoices which have a status of Charge on Account
What can go wrong & what can you do about it?
Can’t refund an invoice that was charged on account: If the customer is returning parts that were previously purchased on account, the system will not allow you to use the status of charge on account for the refund invoice. Instead add a payment line and use “Account Credit” as the payment type. Alert Accounting that this has been done so that they know to clean up the customer’s account by applying the
account credit against the charged balance.
Contact support for more information:
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Australia/Asia Pacific - 61.2.9037.2450 extension 2
Fax Line - 866.896.1045 (notify email@example.com when faxing documents)