A Revolving Receivable is considered an “open ended” receivable, since the total amount to be paid is not determined at the time of the purchase. When an order that is financed with a revolving payment plan (a.k.a. revolving charge) is completed, the principal amount is shown in long term receivables.
The Standard Monthly Payment (SMP) is calculated based on the plan type. During cycling, the SMP amount is moved from "long term" receivables (total amount customer owes) to open item receivables (amount due now from the customer or "short term" receivables).
The SMP is comprised of the interest amount, insurance, and the principal. When cycled each month, the system determines the amount of interest to be charged, based on either the Monthly Balance at the time of cycling or based on the Average Daily Balance at the time of cycling. (See Calculate Interest On field in Revolving Receivables Payment Plans.) Insurance, if applicable, is also calculated during cycling. With some revolving plans, the SMP changes each month depending on the principal and interest amounts.
A new revolving payment plan can be established for a customer from within the order entry process and can also be established using Enter a Customer's Revolving Terms & Conditions.
General System Control Settings - The Extended Receivables add-on module must be active on your system.
Revolving Receivables Control Settings - Specify your revolving receivables system preferences, such as whether or not users access the full or short version of the worksheet, whether or not waived interest is charged back to delinquent accounts, etc.
Revolving Payment Plan Settings - Create and maintain the revolving receivables payment plans that your company offers.
Extended Receivables Insurance Code Settings - Create and maintain the revolving insurance plans that your company offers.
Insurance Underwriter Settings - Establish and maintain settings for the revolving insurance underwriters with whom you do business.
Revolving Worksheet (Full) - Use to establish revolving payment plan for a customer during the order entry. Full version of worksheet displays if Access Worksheet within Sales Order Entry field in Revolving Receivables Control Settings is checked. Worksheet is accessed from sales order entry, debit exchanges, and service orders when financing an order with a revolving payment plan.
Revolving Worksheet (Short) - Use to establish revolving payment plan for a customer during the order entry. Short version of worksheet displays if Access Worksheet within Sales Order Entry field in Revolving Receivables Control Settings is NOT checked. Worksheet is accessed from sales order entry, debit exchanges, and service orders when financing an order with a revolving payment plan.
Adjust Revolving Plans - Use this routine to make the following types of adjustments to a customer's active revolving plan.
Enter a Customer's Revolving Terms & Conditions - Establish new revolving payment plans and maintain existing plans for customers. You can set up a customer's revolving charge plan to be used for future purchases. You can also use this routine to change the MMP amount and other settings for the customer's existing plan.
Enter Statement Messages - Define the messages that you can link to revolving customer statements. Once established, assign these messages to revolving customer statements using Indicate Message to Print on Customer Statements.
Indicate Message to Print on Customer Statements - Link statement messages to one or more plans, states and/or store locations and assign or exclude messages for specific customers.
Print a Customer's Revolving Statement - Print new revolving customer statements or reprint revolving statements that were moved to history.
Print Revolving Insurance Forms - Print or re-print the appropriate insurance forms for a selected customer and plan.