Implementation of automatic calculation of collection and penal expenses
Collection cost and penal interest products
Add the new sales invoice products Collection costs EUR x, VAT 0% and Penal interest, EUR 0, VAT 0% to Procountor’s product register (Registers > Products). You can specify the amount of collection costs in advance and edit this default price for individual invoices, if necessary. Procountor will calculate the amount of penal interest costs. You can select any unit for the products (e.g. qty for Collection costs and day for delay fees).
Implementation of calculation
Tick the item ”Is the automatic handling of collection- and penal costs enabled?” in the Usage settings (Management > Company info > Usage settings) section of Company information. After you have enabled the function in this way, enter the following details:
From the collection-cost product drop-down menu, choose the Collection costs product you added to the product register and, correspondingly, Penal interest as the penal interest product.
- The default day margin for penal interest is 0 days, but you can change it to any figure you like. In other words, you can specify the delay in payment that your company will forgive. Calculation of penal interest will only begin once the number of days specified in this field have elapsed from the due date. Weekends and holidays are taken into consideration in the calculation of the margin.
Note! Once you have enabled the collection costs feature, collection costs will be added to the next invoice you create for the customer. Procountor will also calculate penal interest for late payment and add it to the customer’s next invoice.
Allocating invoices to customers
Use the Not adjusted to business partner search in the Search view to make sure that the sales invoices you have created have been allocated to customers in the register. If unallocated invoices are found, you can use the Adjust to business partner option accessed through the More actions button in the Search view to manually allocate the invoices to customers. Collection and penal expenses can only be calculated for invoices that have been allocated to customers in the register.
Penal interest calculation
If a customer is late in paying an invoice, i.e. the payment date is greater than the due date + the margin specified in Company information, Procountor will calculate by how many days the payment was late and record the amount of penal interest to be collected into the database. The program will then suggest adding a penal interest row to the customer’s next invoice. The penal interest rate specified on the invoice will be used to calculate the amount of penal interest due.
When you create a payment reminder for an invoice created for a register customer, Procountor will prompt you to specify whether a collection cost row will be added to the customer’s next invoice.
- If you reply “No”, the payment reminder will be sent in the normal fashion, and the program will not suggest a collection cost row for the customer’s next invoice.
If you reply “Yes”, the program will prompt you to enter the “Collection cost row comment”.You can then enter a text that will be printed as a comment on the invoice row.You can toggle the visibility of the comment row on the invoice sent to the customer from the Comment row setting in the Usage settings view in Company info. The payment reminder will then be sent in the normal fashion, and the program will suggest the inclusion of a collection cost row on the customer’s next invoice.
Invoicing the costs
Cost invoicing as part of a new invoice
When you next create an invoice for the customer, the program will ask whether to ”Add collection costs/penal expenses to the invoice?”
- If you reply “No”, nothing out of the ordinary will be done and sales invoice creation will continue in the normal fashion. The program will suggest the inclusion of the same collection and penal expense rows when you create the following invoice for the customer.
- If you answer ”Yes”, collection and penal expenses will automatically be added to the invoice as a product row, and the invoice number from which the costs have been incurred will be included in parentheses after the product name when the invoice is first saved. There can be any number of such product rows on the invoice if the customer has been the object of several debt-collection measures and/or has several invoices in arrears. When you save the invoice for the first time, the collection and penal expense rows will be marked as collected in the database, and the program will not suggest them again.
- If you wish to delete collection and penal expense rows without ever charging them from the customer, you must add them to an invoice, save the invoice, and then delete the rows.
Invoicing costs in connection with importing invoice data
If you are creating invoices with the Import data function and have enabled the automatic calculation of collection and penal expenses, the program will check the customer of each imported invoice for collection rows and add these to the invoices. By default, Procountor will tick the item ”Automatically add uninvoiced collection and penal expenses to the invoices in the invoicing data?” You can untick the item if you do not wish to include the collection and penal expenses on the invoices at this time.
Monitoring and invoicing accumulated costs on a separate invoice
Collection transactions can be monitored through the Invoice search option in the Search view. If your company has enabled the automatic calculation of collection and penal expenses, you can add the New search condition Collection and penal expenses to the Search function. You can then execute a search for invoices which include uninvoiced collection and penal expenses by ticking the search criterion. You can create a new invoice for the customer by right-clicking on the search result and choosing Create new invoice. Proceed as in "Cost invoicing as part of a new invoice", i.e. create an invoice for the customer.
You can list accumulated collection and penal expenses by customer on the Collection and penal expenses report in Payment reports.
Use of Visma Duetto Ltd’s services
Companies that use Procountor can send payment reminders through the DuettoForte service and collection assignments through the DuettoPro service to Visma Duetto Ltd, and receive the settlements as reference payments directly into the Procountor environment.
The services of Visma Duetto Ltd are available to all Procountor customers, irrespective of company size or the number of assignments. No annual fees are charged for these services and voluntary debt collection is completely free of charge for the ordering party. You can follow the progress of your collection assignments in real time through a browser-based customer interface.