The following article has been transferred to https://help.synergetic.net.au/s/article/Debtor-Instalments
The Debtor Instalments process is used to break up applying charges based on instalment frequencies, each debtor can be on different frequencies such as annual, half yearly, quarterly, monthly, fortnightly & weekly. This does not impact the payment component of debtors just the charging process. This guide is intended to outline the process in a step-by-step manner taking into account the most common methods of using debtor instalments.
Setup Finance Configuration
In order to use instalments the Finance Configuration needs to be setup to do so. These settings are located in System Finance Configuration Maintenance Debtors Tab Page 1 sub tab
The settings specific to using debtor instalments are highlighted below:
Unearned Instalments control account:
The unearned instalment control account needs to be set to an existing general ledger account. When charges are applied that are set to use instalments then the total charge is posted to this account, then when an instalment is applied that portion of the charge is moved from this account to the appropriate income based account.
Default No of Debtor Instalments:
For all new Debtors or existing debtors when first implementing instalments what is a default number if instalments for the year.
Default Instalment Day of Month:
Default day of month that instalments are charged
For all new debtors or existing debtors when first implementing instalments what is a default frequency instalments will be charged.
Auto Create First Transaction of New Instalments:
If selected Synergetic will automatically create the first instalment transaction when running the charging program. If not selected the first instalment charge is raised when running the Debtor Instalment Charges program initially.
Print Unearned Instalments on Original Statement Only:
If selected, then the debtor statement if setup to do so will print the instalments total on the first statement run after the instalments are configured. If not selected, then the total will be printed on every statement.
Set up Fee Codes
The Fee codes you want to be used in the instalment process need to be specifically enabled. To do this go to Debtors Fee Maintenance select the fee codes that when applied you want to be picked up by the Debtor Instalment charges.
To do this on the general tab, tick the option Use Instalments
For Tuition based charges you need to ensure the total amount for the year is set in the Amount field, not the traditional amount per billing cycle.
Run Auto Tuition
The Auto Tuition process once set up and running is the same as when not using instalments. Except for the Use Instalments option ticked against the fee codes and tuition based fees, the total amount for the year is set in the Amount field against each fee code.
Auto Tuition Tab
The fee code will still require the Auto Tuition tab to be configured for the automation of your main billing run.
On the Auto Tuition tab the rules for what students are to be charged are set.
The Auto Tuition Code is mandatory for any code you want to charge automatically in the main billing run. This field gives you the options setup the in the lookup table "luDebtorAutoTuition"
This is used to define the order you wish your charges to appear on your statement by setting up a code, description and an Auto Tuition Sequence. The order is critical if applying percentage based discounts.
The Auto Tuition details are set to provide the rules of which students to apply this charge against.
In this example every student assigned to Year Level 55 will be charged.
Campus: Charges can be Campus specific
Year Level From & Year Level To: Charges can be based on a year level range or be year level specific
Border Type: Marking charges specific for borders or day students (or any other option available under luBoarder)
Tuition variation: Alternative charging for exception students such as overseas students being charged a different tuition amount.
Number of Siblings: To target a charge or discount (useful for sibling based discounts) based on the number of siblings attending the school at the same time (siblings are categorised by having the same SC1 contact).
Family Position: 1 for the eldest child attending the school in the same family (families are categorised by having the same SC1 contact).
Each auto tuition run requires a Period to be specified. The Periods to be charged enables charges to be period specific. For example camps might only be a term one charge and is not to be picked up in billing runs for term 2, 3 & 4. In the example above this charge will only apply for Period Number 1. If you have a charge that is to be applied every auto tuition run set the period number to zero.
Once all the fee codes are configured you are ready to run the auto tuition program.
Running Auto Tuition
The Auto Tuition program is located under Debtors >Automatic Tuition
So long as the Is this a What If run? is ticked, it is only a preview of the charges that will be processed. This allows for checking and editing to be done prior to the actual billing run.
There are two preview options Detailed and Summary.
Detailed will list every student that is picked up in the run and list the charges and discounts being applied to them.
Summary will list each charge type being applied per each year level, the number of students it is being applied to and the dollar total.
The What If viewing doesn't take the instalments into consideration.
After doing your What if runs and checks, un tick the "Is this a What if run?" and the charges posting is created and closed off automatically if selected.
To view the posting go to, Debtors > Debtor Charges Entry
The positing if you didn't have automatically close posting selected will be sitting in the open postings area.
If it was selected you will need to change to view the Past Debtor Charges Postings option:
The Close Off report or Audit Print will show the instalments treatment:
In this case the charges are zero as in this case the option Auto Create First Transaction for New Instalments was not selected.
Impact to Debtor Account
If you check against the debtor account you will notice no actual charges have yet been applied on either the outstanding or history tabs.
However if you go to the Instalments tab, there is now an incomplete instalment set.
Run Statements or Debtor Notification of Annual Fees
Depending on your Statement layout, you may now either generate a statement run or alternatively send out a notice of the Annual fees amount including instructions to your Debtors on the instalment frequencies available to them and any incentives for discounts for those electing to pay the annual amount.
If just using the notice option, then this can be sent prior to the auto tuition run. If using statements then the Auto Tuition needs to be run before generating the notification statements.
Be sure to include what the default option is in the debtors notice as this will be the option they will be forced onto if you do not hear back from them by a certain date. If this is not the first year instalments have been used, then you could also default to the debtor's instalment frequency the previous year.
To check how the instalment will be displayed on your statement you can use the Test Statement Layout option in Debtor Statements
Notice the Total Annual charges and Annual Changes not yet due in the layout above. The individual charges will not be displayed on a statement until the instalments process has been run.
Configuring Debtor Statements
The Debtor Statements process allows for the generation of both Statements and Invoices. These, once they have been generated can be stored in the database, then when authorised they can be emailed or published on the Synergetic Community Portal. Debtor statements are set up in System > Finance Configuration Maintenance > Debtors > sub tab Page 3
Synergetic allows you the ability to archive your debtor statements into a PDF document. In order to turn this feature on you will need to go into Finance Configuration Maintenance>Debtor Tab>Page 3 and enter in a path to save your archived files. This setting is mandatory, without the path specified statements will not be generated.
If using multiple sub ledgers difference statement and invoice layouts can be defined in > Finance Configuration Maintenance > Debtors > sub tab Sub Ledgers > General
Underlay's are set in > Finance Configuration Maintenance > Debtors > sub tab Sub Ledgers > Underlay
Your underlay's are pdf files which are combined with your statement or invoice crystal report layout. They can contain terms and conditions or reminder/overdue notice headings.
If printing onto pre printed stationary you can elect in the Apply Underlay section so that the underlay is not applied when printing but only when emailing the statement. Different underlay's can be applied to your sub ledger accounts if applicable.
Printing Debtor Statements
To print Debtor Statements, click on the Debtor Icon and choose Debtor Statements from the drop down list.
Generate New Statement Run
Choose from the button options "Generate New Statement Run"
On the first screen you will need to make some selections before you can proceed
- Statement Date & Statement Due Date
- Statement Group (Include/Exclude)
- Statement Description – be aware appears in portal
- Statement Comment
If print specific debtors ticked:
If printing for a group of debtors:
Allow Print if Negative Balance – Do you want to print Statements with a negative balance?
Debtors to Include – Check these options for excluding certain debtors. You can modify these settings to include or exclude certain debtors, based on Balance Criteria or Transactional criteria.
Discount section, leave this blank if no discount notice is to be printed on the statement.
The last page of the wizard allows you to enter in up to two voluntary contribution amounts which you can add to the bottom of your debtor's statement layout (if incorporated into the Crystal report).
The G/L fields are used when processing Bpay receipts. If someone pays the full amount of what is owing on the statement, and includes the voluntary contribution amount, the system will know be able to allocate the amount accordingly. The G/L code needs to be set against a development fund in look up table lufund.
As each step is completed for a statement run a green tick appears next to the step, if you put the mouse over the green tick it will show you the user who ran that process and when.
Select Statement Run
To change the statement run currently in, select:
View All Statements
The statements will come up in one big pdf file to view.
Regenerate Statement Images
Use if your statement layout needs to be changed, this will not add new debtors or charges to the run
Goes through the statement run steps again
Stores Statements in Database
Stores individual statements in the database and applies the underlay if specified.
View stored statements
View the statements with or without the underlay using the apply underlay selection.
Zoom in and out options, option to open in the default pdf viewer.
Ad hoc email or printing but only one at a time from here.
After storing and viewing statements:
Hint: move cursor over tick to see who and when statements were stored.
Authorise / publish on Portal
Once the authorisation date is reached statements can be bulk emailed and be available to download from the portal:
In debtor maintenance you can view when the statement was downloaded by the portal users.
Once authorised select the Email Statements/Invoices button this will go ahead and email all statements in the run that the debtor had email setup as the notification method.
Will print all statements for debtors who have Print as their notification method and have not yet been notified.
An alternative to emailing and printing for all debtors in the run is to set a notification range.
Set Notification Range
Select the Filter button to determine the range criteria:
Once displaying the debtors you want the range set against, select the Range button.
To clear existing notifications use the buttons in the bottom left corner:
When a range has been set when using the Email and Print functions it will only email or print to those accounts set in the active range.
Use the clear button to remove an active range.
Update Debtor Instalment Frequency
Once you get notification of a Debtor's frequency selection, locate the debtor in Debtor Maintenance
Debtors > Debtor Maintenance
Go to the Instalments tab:
The Override Instalment Details can be set at any stage of the process, even before the auto tuition run.
Once an instalment has been created like the annual one in this case, to modify the frequency you need to select the Update Instalment Freq... button.
Select the New Instalment Frequency, the Instalment Charges remaining for Year and the Next Instalment Date.
Use the Optional Selections carefully if you are partway through an existing instalment plan.
The instalment frequency is now adjusted.
Another instalment adjusted to quarterly:
Run Debtor Instalment Charges
NOTE: If any split payments for your debtors these need to be set before processing instalments.
Once all the debtors have their instalment frequencies set, go to Debtors Debtor Instalment Charges
This will only process the instalments whose next due date equals or is before the process date entered. The user can select to only process a particular frequency eg. Weekly or fortnightly. If leaving the Instalment Frequency to Process blank it will process all frequencies at once.
The close off report shows the charges generated, in this case different amounts depending on the frequency being processed.
Impact to Debtor Account
If you check against the debtor account you will notice there are now charges found on the on either the outstanding or history tabs..
If you go to the Instalments tab, the amount charged is now updated.
For those set to annaul their instalment will be set to complete.
At this stage you would do a new statement run, please refer to section 4 on generating statements.
Troubleshooting / FAQ
How to reverse an instalment run
If you have generated a statement run since the instalment charges you won't be able to undo the instalment posting until you delete the statement run.
Assuming there has been no statements generated to reverse an instalment run go to Debtors > Debtors Charges Entry
Select Past Debtor Charges Postings as it will have automatically been closed off:
Use the preview button to view the Close Off report.
Use Open to re-open the posting, the system warns against making any modifications to the posting. We will not be modifying any charges.
With the posting now open, select the Posting Action button.
Select Abandon Posting
Type abandon in to confirm deleting this post, then select OK. WARNING: This action cannot be undone, use with care.
Note the charges are removed and instalments are updated to reflect the charges have not been paid.
Note, that the Next Dates do not revert back to before running the instalment process.
New Student starting mid year
If a student commences after the after the instalments have been setup and run, they can still use instalments to apply their charges.
Set up their frequency if not the default on the Debtor, Instalments tab:
Ensure the Instalment Count accurately reflects the number of instalments to be paid for the remaining year.
Using Debtor Charges Entry
Create a Charges Posting
Find the student we are charging
Select the standard tuition fee
Adjust the amount to cater for the duration they are attending school for in the remaining year.
The Pay by Instalments will be ticked automatically if the fee code selected has been configured for instalments use. The Number of instalments will appear but can be adjusted here if needed. You can elect for the first instalment to be generated now or if not selected, the first charge will be generated when running the Instalment Charges process.
Notice on the close off report, only a portion of the fee is charged, in this case a fourth of the total due to four instalments selected.
Debtor changes frequency mid way through existing incomplete instalment
If a debtor wants to modify their frequency selection mid way through an incomplete instalment you have two options.
The first is the easiest and less manual method and means only the remaining component of the instalment will be applied by the new frequency.
The second is if the components already charged on a different frequency they want to be applied as a different frequency.
Only remaining instalments on new frequency
Go to the Debtor's Debtor Maintenance record on to the Instalments tab:
Select the Update Instalment Freq... button:
Select the new frequency and the number of instalments remaining for the year.
Once changed the new details are displayed in the instalments tab:
Run Debtor Instalment Charges like normal:
The charge amount now reflects what has been charged in total regardless of the frequency used:
In the History tab we can see the individual charges that have been processed:
First charge $2500 when on quarterly, and the $937.50 charge once changed to monthly (with 8 instalments).
Historic and remaining instalments on new frequency
If a debtor has already received an instalment charge under one frequency but want the charge applied under a different frequency we have to manually complete the current instalment plan, credit (negative charge) the whole amount, then start again under the new frequency.
To do this:
Go to the Debtor's Debtor Maintenance record on to the Instalments tab:
Select the Update Instalment Freq... button:
Change to an unused frequency that no other debtors are currently set to.
Change the Instalment Charges Remaining for Year to 1, so you only have to run the process once to complete the instalment plan.
Run Debtor Instalment Charges but only for the frequency set to in the last step in this case Weekly:
The remaining amount is charged.
Go back to the Debtor's Debtor Maintenance record and on to the Instalments tab there should be no incomplete instalments available:
Update the Override Instalment Details section to reflect what frequency we want to use going forward:
Using Debtors Charges Entry, credit the total amount back by doing a negative charge.
Ensure that Pay by Instalments is not selected.
At this stage it would be advisable to generate a statement for this debtor that doesn't go through the notification process. That way the debtor never sees the transactions generated to tidy up their account.
Then again Using Debtors Charges Entry, re charge the total annual amount this time selecting Pay by Instalments:
Once applied the debtor now is to be processed along with your existing instalment charges.
On the history tab for the debtor we can see the old charges, the bringing them back to a zero balance and starting again on the new instalment plan.
Student leaves prior to instalment completion
If a student leaves the school prior to their instalment completing the important component is to work out how much of the existing charges we want applied and how much of that instalment we want to be credited back eg. If they leave before the start of term 4 are we still charging them the term 4 component of their fees?
This debtor has been charged their first quarterly instalment:
They are leaving half way through the second term so we still want to charge them a further $1250 but no more than that.
As the amount remaining on the instalment is easily factored into the amount we want to charge we can simply adjust the instalment frequency and remaining charges amount.
Eg. $7500 / $1250 = 6
So we can run one more instalment with these settings.
We could then move them onto an unused frequency and have the instalment remain as incomplete.
Ideally however we would want the instalment finished. So at some point we would move them onto an unused frequency and put the instalment charges remaining as 1:
Then using Debtor Instalment Charges:
Running the instalment charge for the unused frequency for the Debtor will finish off the instalment.
We would then want to do a credit through Debtors Charges Entry as a negative charge for the $6250 we didn't want them charged (with instalments un selected) to bring their balance to where it needs to be which is the $3750.