Deferred Core Billing
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Deferred Core Billing - 13 minutesDeferred Core Billing - 13 minutes
Deferred Core Billing (DCB) allows customers to defer the core portion of the sales for a predetermined length of time for customers who do not want to be billed for core unless it is not returned.
If the customer returns the core within the allotted time, they will never be billed for that core; however, if the core is not returned in the deferred time, they will automatically be billed for the core on their next statement.
DCB is available regardless of whether or not the transactions are created as regular, sourced, transfer, or Internet sales or returns but is not available to retail accounts.
"Deferred Core Invoice" is defined as any core invoice created for an account with the 'DEFERRED CORE BILLING' flag checked that is not yet "due" to be returned.
"Delinquent" or "Non-Deferred" are defined as any core invoice that has become "due" because the core has not been returned for credit within the allotted grace period.
Deferred Core Billing Setup
Store Controls
Three controls on the store level determine how DCB invoices are printed.
- 'PRINT DEFERRED INVOICE' - Print part invoices only or both part and core invoices.
- 'REPRINT DEFERRED INV / # DAYS' - Reprint core invoices as a reminder that they are about to become due.
- 'DEFERRED ON STATEMENT' - Include/exclude deferred core transaction details on customer statements.
Account Controls
DCB functionality is only available to accounts with a 'PAY TYPE' of 'OI-STANDARD' or 'OI-STATEMENT PAY'.
If the account is set to 'BALANCE FORWARD', change the 'PAY TYPE' before enabling DCB. If the account already has transactions, the ACCOUNT CONVERSION screen can be used to convert the account, which must be done before allowing DCB.
Several setups on the MAIN ACCOUNT ENTRY screen under the 'STATEMENT SETUP' button control how DCB functionality is tracked for a customer.
DEFERRED CORE BILLING
Determines whether or not the customer is allowed Deferred Core Billing functionality.
- Checked - DCB is enabled for the customer.
- Unchecked - DCB is not enabled for the customer.
DEFER CORE # OF DAYS
Enter the number of days core sales can be deferred before being billed to the account if not returned.
Enter the number of days, from 0 to 99, that invoiced cores are deferred before being considered delinquent and billed to the account. When set to zero, the core is deferred when invoiced and becomes due after the End-of-Day process is run for that day if not returned. The default value is '3', however, a normal value might be 30 or 60 days.
DEFER CREDIT LIMIT
Optionally enter the uppermost dollar amount of deferred core that can be invoiced at any given time. For example $100.00.
DEFER STOP OVER CREDIT LIMIT
Determines whether or not cores can be deferred if the total deferred core not yet returned is over the 'DEFER CREDIT LIMIT'.
- Checked - Core will not be deferred and core sales will be included on the part invoice when the value of deferred core is greater than the 'DEFER CREDIT LIMIT' amount. The 'ACCOUNT OVER THE DEFERRED CREDIT LIMIT' Override Security proc is available to override the restriction.
- Unchecked - A pop-up will open at Point-of-Sale for core part sales with a notification that the customer is over the 'DEFER CREDIT LIMIT', however, the core will still be deferred. This allows the counterperson to remind the customer that they have an outstanding core without interrupting the deferred core process.
DEFERRED ON STATEMENT OVERRIDE
Used to determine whether or not deferred core transactions are included on the statements and is per account to the store 'DEFERRED ON STATEMENT' setup.
- 'STORE DEFAULT' - Uses the value of the store 'DEFERRED ON STATEMENT' setup.
- 'YES' - Deferred core transactions print on the statements in date order immediately following all other open transactions and payments.
- 'NO' - Deferred core transactions do not print on the customer statements; however, the deferred core total displays on the statement.
INVOICE CORE RETURNS ONLY
The field defaults to checked, is unavailable/grayed out and is not editable. When creating a return invoice, the first modifier used determines the returns that can be added for DCB accounts. If the 'C' CORE RETURN modifier is used, then only the core can be returned on the invoice. If the 'R' RESELLABLE RETURN or the 'D' DEFECTIVE RETURN modifier is used, the deferred core cannot be added to the invoice.
The NEW ACCOUNT DEFAULTS screen can be used to enable or disable accounts for deferred core billing.
Available setups are:
'DEFERRED CORE BILLING'
'DEFER CORE # DAYS'
Deferred Core Billing accounts must be tracked as either 'CORE PRICE', 'CORE COST', 'CORE AVG. COST', or 'USE MARGIN %' for the 'CHARGE CORE' setup. DCB accounts cannot be set to 'NO CHARGE'. Setting the control to 'NO CHARGE' will result in a negative charge on the invoice.
Selling Core Parts
When a core part is sold to a deferred core billing account, two separate line items display in the grid. The system uses two consecutive numbers so that the invoices are kept together.
The first row displays the part and part pricing including the core price. The second row displays the text 'CORE DEFERRED' in the 'DESCRIPTION' field.
The core price is not included in the total.
When the State Taxability on Cores is set to:
- 'TAX IN/NO TAX OUT' - Core tax is added to the part invoice instead of the core invoice. By adding the tax to the part invoice, when the core is returned and the core credit is applied to the core debit, the core invoice does not carry the tax as a balance since the tax is not returned.
- 'TAX IN/TAX OUT' - Core tax is added to the core invoice and when the core is returned, the tax is also returned.
- 'NO TAX' - Tax is not charged at the time the core was sold.
When the invoice is printed, the system grabs two invoice numbers as the first invoice prints so that the transaction numbers will be sequential and the printed invoices can reference each other for auditing purposes.
The part invoice prints the text 'CORE TRANSACTION ON INVOICE # <invoice number>'.
Core Exchange
If the 'E' CORE EXCHANGE modifier is selected, only one invoice will be created for a core exchange.
Since the total of a core exchange is zero (0.00), core exchanges can print with part sales.
The invoice will have the part number, and identify the core transaction information with two line items as the part sale and the core return.
The core will be added to a core manifest since the physical core is available.
Returning Core Parts
Core parts must be returned on a part invoice and the core must be returned on a core invoice.
With the 'INVOICE CORE RETURNS ONLY' setup checked, when creating a return invoice, the first modifier used determines the returns that can be added for DCB accounts.
If the 'C' CORE RETURN modifier is used, then only the core can be returned on the invoice. If the 'R' RESELLABLE RETURN or the 'D' DEFECTIVE RETURN modifier is used, the deferred core cannot be added to the invoice. If mixed return modifiers are selected, the system will prompt with a reminder.
Part Invoice Example:
Core Invoice Example:
The core invoice prints the text 'PART TRANSACTION ON INVOICE # <invoice number>'.
Posted Entries
Both the part invoice and the deferred core invoice are posted to the account and included in the 'DEFERRED' total with the account balances.
The 'DEFERRED' column Core credits have a 'DEFERRED' of 'Y' to identify them as using deferred functionality and 'N' if they are delinquent. The 'DEFERRED' column is for information only and is ignored when applying payments regardless of whether the 'DEFERRED' value is 'Y' or 'N'.
Whether an invoiced core is deferred or delinquent and:
- The core is then returned, the core credit can be applied to the core invoice.
- The customer makes a payment against the core invoice, the payment can be applied to the core invoice.
Returned core are posted to the account as IC transactions and are unapplied.
Note: The ability to automatically apply deferred core credits against deferred core debits can be enabled with a hidden application switch. If enabled, the system validates each deferred core that is returned at Point-of-Sale against the deferred core sale for DCB accounts. Only identified DCB core debits and corresponding DCB core credits are automatically applied. Contact PartsWatch Support for more information.
Posted 'IC', 'PC', 'DC', 'DM', 'CM', 'IA', and 'TA' entries can be posted against deferred core invoices the same way they can non-deferred invoices.
Should a payment be applied against a deferred core invoice so that the invoice is paid in full, and the core is then returned, the core credit cannot be applied against the paid core debit. The core credit will be a normal, unapplied credit and can be applied against other open debits using existing unapplied credit posting functionality.
Menu Path: Customers, Entry Info, Post Entries, POST ENTRIES screen
Delinquent Core
When a deferred core is returned before the 'DEFER CORE # DAYS' expires, the core is not charged to the customer.
The deferred core becomes delinquent if it is not returned by the 'DEFER CORE # DAYS'.
During the end-of-day process on the date the core is due, the system locates the correct core sale invoice and:
- Reduces the deferred amount by the delinquent amount on the core sale invoice.
- Increases the due amount by the delinquent amount on the core sale invoice.
- Updates the A/R totals.
The account statement reflects the core sale invoice with the delinquent amount due as current.
Customer Statements
Depending on the store 'DEFERRED ON STATEMENT' and the customer's 'DEFERRED ON STATEMENT OVERRIDE' controls, deferred core transactions will either print or not print on customer statements.
Deferred Core Billing - Reporting
All core sale and core return invoices are included in the A/R TRANSACTIONS REPORT with part sale and return invoices for deferred core billing accounts whether run on demand or as part of the end-of-day process.
Uncheck 'EXCLUDE DETAIL' on the INVOICE JOURNAL to report both the part, deferred core, and core return transactions.
The CORE ACTIVITY REPORT outputs all deferred core, whether deferred or delinquent that have not been returned.
Select to 'INCLUDE', 'EXCLUDE', or 'ONLY' to report DCB customers using the 'DEFERRED BILLING' filter on the AR INFORMATION REPORT.
